Does House Insurance Cover Foundation Issues? Get the Facts Fast

• Gavin Whitaker
• |
• June 10
• |
• foundation repair

You spot a crack in your wall or your doors are suddenly sticking—it’s natural to wonder if your insurance will help. The truth? Foundation issues make a lot of homeowners nervous, and for good reason. Repairs can get expensive fast, running anywhere from a few hundred to tens of thousands of dollars.

Here’s the kicker: most standard house insurance policies don’t cover general wear and tear, ground movement, or poor construction. If your foundation shifts because of settling, tree roots, or hydrostatic pressure (that’s just water pushing on your basement walls), your insurer will almost always say, “Sorry, that’s on you.”

But there are exceptions. Sudden disasters, like a burst pipe flooding the basement or a slammed foundation from a car crashing into your home, could mean you’re covered. But don’t expect help with slow damage that crept up over years.

• What Counts as Foundation Damage?
• What Does Your Insurance Actually Cover?
• Common Exclusions: What’s Not Protected
• How to Help Your Claim Succeed
• Smart Moves for Foundation Worries

What Counts as Foundation Damage?

Not every crack or wonky floor means your foundation’s in trouble. But there are some warning signs you shouldn’t ignore. Foundation damage shows up in ways that go beyond just cosmetic cracks. Think along the lines of your house shifting or settling so much that things actually stop working right.

The biggest red flags include:

• Wide, jagged cracks in walls or ceilings, especially above windows or doors
• Floors that slope or feel bouncy
• Gaps where your floor and walls meet
• Sticking doors and windows that won’t close properly anymore
• Cracking or buckling of the foundation itself
• Water seeping into your basement through the foundation

Here’s a quick look at the types of damage and what usually causes them:

Worth calling out: Small hairline cracks from the concrete drying out (right after the home’s built) are pretty normal and not a big deal. Wide or worsening cracks, doors that don’t fit, or water leaks deserve your attention. Don’t just spackle and hope—these could point to bigger foundation repair issues that may be covered or denied by insurance, depending on the cause.

If you’re not sure, snap photos and track changes over time. Pros usually recommend getting an expert to check things out before you panic or file a claim.

What Does Your Insurance Actually Cover?

So, what will your house insurance help pay for when it comes to your cracked or settling foundation? Most policies in the U.S. follow pretty simple rules: You’re covered only if the damage is caused by a “covered peril.” That means events like fire, certain types of water damage (think a busted pipe, not flooding from rain or rising rivers), explosions, vandalism, or a vehicle hitting your home.

If your foundation gets wrecked in a sudden covered event, insurance may step in. But if rainwater slowly seeps in and weakens things over months, or if the ground just settles over time, you’re usually out of luck. That’s considered “maintenance” or “wear and tear”—insurance companies don’t want to pay for things they believe are gradual or preventable.

• Sudden Accidents: If a tree falls during a storm and smashes a corner of your home, causing the foundation to crack, most likely you’re good for coverage.
• Plumbing Leaks: If a pipe bursts suddenly and undermines the ground under your house, most policies will pay for the foundation repair, at least up to your stated limits.
• Fire: This one’s clear: if your foundation is damaged as a result of a fire, repair is usually covered.
• Vehicle Impact: Someone loses control and ends up in your living room—insurance jumps in to fix what’s broken, foundation included.

Here’s a quick look at what’s typically covered and what’s not:

Many insurance companies do offer optional riders or endorsements for things like earthquakes or floods, but you have to ask for these and pay extra. If you’re in an area with lots of soil movement, like Texas or California, getting a little extra coverage can save you big headaches later on.

Tip: Always read your policy’s "Exclusions" section. This lists everything your insurer won’t cover. If you see foundation issues in that list, you might want to give your agent a call and ask what options you really have.

Common Exclusions: What’s Not Protected

Most people think their homeowners insurance is a safety net for anything bad that happens to their house. But when it comes to foundation issues, insurance companies have a pretty long list of reasons to deny your claim. Knowing these common exclusions can save you a ton of frustration (and maybe cash, too).

• Settlement and Natural Movement: Insurance considers your house settling or shifting over time as part of normal aging. If a crack pops up slowly, don’t expect your policy to cover repairs.
• Poor Workmanship or Construction: If your foundation problems come from shoddy building or cutting corners during construction, your insurance company won’t touch it. This holds true even if a contractor did things wrong years ago.
• Floods and Earthquakes: Standard policies don’t cover foundation issues tied to floods or earthquakes. You need extra flood or earthquake coverage for that, and millions of folks go without it.
• Tree Roots and Invasive Plants: If roots sneak under your house and mess with your slab, that’s on you. Most policies spell this out clearly.
• Long-Term Water Damage: Slow leaks or water coming up from the ground can trash your foundation over time. Insurance only helps with sudden water disasters, not the slow stuff.

One thing that surprises a lot of homeowners: even if a problem becomes severe and leads to major repairs, it matters how that damage started. If it’s on the exclusion list, house insurance will not pay up, no matter how much the fix costs. So, don’t wait until you see visible cracking—knowing these exclusions gives you a head start when it comes to protecting your home (and your wallet).

How to Help Your Claim Succeed

If you think you’ve got a shot at making an insurance claim for your foundation, you want every advantage. Companies look for any excuse to say ‘no,’ so you’ve got to stack the odds in your favor right away. Here’s how.

• Document everything: As soon as you spot foundation trouble, take clear photos and videos. Snap shots of cracks, leaks, sticking doors—any sign of damage. Don’t forget dates. Save written notes or measurements if things get worse.
• Dig up your insurance policy and highlight anything related to foundation or structural coverage. Every policy has its quirks. If you’re lost, call your agent for straight answers about what’s covered and what isn’t.
• Get a pro involved. After documenting the damage, hire a licensed structural engineer or reputable foundation repair contractor for a full inspection. Their report adds weight to your claim, especially if they can tie it to a covered event, like a burst pipe.
• File your claim fast! Insurance companies can deny claims that sit too long. Most want reports within 30 to 60 days of the loss. Waiting months makes your case look weak—and gives the adjuster ammo to reject you.
• Keep receipts for any emergency repairs you have to make to stop further damage. You might get reimbursed, or at least it shows you did your part to prevent it from getting worse.

Check out these stats from the National Association of Insurance Commissioners (NAIC) about why house insurance claims for foundation repair get denied most often:

Bottom line: Get your story straight, act quickly, and gather solid proof. Insurance companies love paperwork—show them you mean business and you’re not bluffing about your house insurance claim.

Smart Moves for Foundation Worries

If you own a house, ignoring foundation issues usually makes things worse—and way more expensive. Staying on top of things is your best bet. Let’s talk about some real, hands-on steps you can actually use to keep your foundation safe (and maybe impress your insurer while you’re at it).

First up, check for changes every few months. Look for cracks, doors that don’t close, uneven floors, or moisture. A simple walk-around beats waiting on a huge repair bill. If you see anything off, snap a clear photo and note the date. You want proof if you ever need to file a claim.

Water is the enemy. Most foundation headaches in the U.S. come from poor drainage. Downspouts dumping water too close to your place, or gutters stuffed with leaves, can start trouble fast. So, make sure gutters are clean and downspouts send water at least five feet from your home.

• Keep soil moisture even: Letting the ground get soaked then bone dry causes shifting. So if your area’s in a drought, water the soil around your house just enough to keep it from cracking.
• Fix leaks right away: Any plumbing leak, especially near the slab or crawl space, should jump to the top of your to-do list.
• Trim trees and shrubs: Roots too close to the foundation pull water away fast and leave gaps. Plant at least ten feet out from your house if you can.

If you’re buying a new place, ask for a foundation inspection, not just a standard home inspection. Foundation repairs topped $10,000 on average in 2024, according to HomeAdvisor, and early checks can save you a massive headache. If your area’s known for swelling clay or earthquakes, see if your house insurance offers an extra rider or sump pump coverage. Some companies even offer a break on your premium for proactive upgrades like better drainage or sump pumps.

"About 60% of homes built on expansive soils suffer from foundation distress at some point," says the American Society of Civil Engineers. "Routine inspections and proper water management are your best friends."

Here’s a quick comparison table of what helps versus what hurts your odds of foundation misery:

You don’t need to be a construction expert to do right by your house’s foundation. Track the basics, keep eyes open, and act quick if something changes. You’ll have a better shot at avoiding that nasty repair bill—and, with good records, a stronger case if you end up needing insurance down the road.