Cracks in Foundation and Homeowner's Insurance

Worried about cracks in foundations and homeowners insurance claims? Our guide covers how to identify cracks, the claims process, and maintenance tips.

The foundations of your home are designed to support your property, protect it against natural disasters, and shield it against moisture from the soil.

Discovering cracks in your foundations can be a worrying time that brings many questions and concerns. What is the extent of the damage? Is this damage covered by my homeowner’s insurance? How do I file a claim?

The prospect of dealing with cracks in your foundations and home insurance can be daunting due to the structural impact on your property and because of the uncertainty of what the future holds financially. Will a claim cover the cost of repairing the damage? Will you be left out of pocket?

Typically, homeowners insurance policies are designed to cover sudden and accidental damage but not issues that arise from general wear and tear or neglect.

In this article, we bring you insights into insurance claims for foundation cracks and address the common questions and concerns that arise when facing this issue.

Understanding Insurance Coverage for Foundation Cracks

Understanding insurance coverage for foundation cracks can feel like solving a complex puzzle. It’s all about knowing what caused the cracks, what type they are, and what your insurance policy covers or excludes.

Homeowners insurance advisor Kristopher Kane stresses the importance of being sure you have adequate coverage. “Though cracks or other damage to the foundation of your house may be covered by your policy, there are some potential coverage gaps to be aware of. Neither flood nor earthquake damage are standard parts of homeowner’s insurance policies, but both can cause significant foundation damage. Always be sure you have the coverage you need for your risk factors.”

A homeowners insurance policy generally provides coverage for foundation damage if it’s deemed “sudden and accidental” or “sudden and unexpected” and occurs due to a covered risk. Such risks that your policy may cover include:

Impact from falling trees or debris
Destruction from fires or blasts
Extreme weather events such as hail, tornadoes, or strong winds
Strikes by lightning
Acts of vandalism or civil commotion
Collisions involving a car or aircraft with your residence

Kane says it’s important to know about the responsibilities homeowners have for proper maintenance of their homes. “Most homeowner’s insurance will cover damage from sudden and accidental causes, but it won’t cover mundane wear and tear or any neglected maintenance. If a covered peril like a fire causes damage to your foundation, you’re generally well covered. But if the damage to your foundation is due to soil settling, an ongoing groundwater leak, or some other uncovered event, you’re likely facing those repair costs on your own.”

Types of Foundation Cracks: Minor vs. Major

Foundation cracks come in different shapes and sizes, with each type telling a different story.

Minor Cracks

These are small and thin cracks, usually no wider than a credit card. These cracks are often part of the natural aging process of your home and are not a cause for concern. Unfortunately, as they are usually caused by wear and tear, they are not usually covered by your home insurance.

Major Cracks

Major cracks often tell a worrying story about the condition of the structure of your home. If these cracks appeared suddenly after a specific incident (such as a tree falling on your house or an earthquake), your insurer might step in to help with repairs.

Understanding the difference between cracks and their origin can help you figure out where you stand with your insurance coverage. It’s all about piecing together the clues and understanding your policy.

Insurance Claims and Foundation Cracks: Navigating the Process

If you’re facing foundation cracks and considering an insurance claim, knowing the steps involved can make the process less daunting.

Filing a Claim: Step by Step

Document everything: As soon as you notice foundation cracks, it’s time to start documenting. Take clear photos or videos showing the extent of the damage.
Review your insurance policy: Before getting in touch with your insurance company, review your policy. Understand what’s covered and what’s not.
Contact your insurance company: Get in touch with your insurer as soon as possible to report the damage. They will guide you through the claims process and what happens next.
Keep records: From the moment you file your claim, keep detailed records of all communications with your insurer, including dates, names, and what was discussed or agreed upon.
Professional inspection: It is likely that your insurance company will arrange a professional inspection of your home. A detailed report of the damage and any potential causes will be provided to your insurance company.

The Adjuster’s Role and Assessments

Once your claim has been filed, your insurance company will send out an adjuster to inspect the foundation cracks, assess the damage, and determine the cause. They will also compare your policy to decide what is covered.

When to Consult Professionals and Legal Advisors

If you face challenges with your claim or feel your insurance company isn’t acknowledging your policy appropriately, it may be beneficial to seek legal advice from an attorney specializing in property insurance.

Professional guidance ensures you understand the full scope of the damage, your policy’s coverage, and your rights as a policyholder. This will enable you to make informed decisions and take the appropriate steps toward a satisfactory outcome.

Homeowner Responsibilities: Maintenance, Prevention, and Record-Keeping

As a homeowner, the more you can do to maintain your property, the less likely your home will develop major foundation cracks. Regular maintenance and diligent record-keeping can prevent or minimize foundation issues but may also help you when it comes to filing an insurance claim.

Maintenance and Prevention

When it comes to protecting your home from foundation cracks or making a claim, good maintenance and prevention are critical. Let’s take a look into how you can prevent cracks from occurring and how swift and proactive action can save time and money.

Regular inspections: Take the time to inspect your foundations regularly. Look out for new cracks or changes in existing ones. Keep an eye on doors and windows, too. If they start to jam or fail to latch, it could indicate shifts in your foundations.
Manage water flow: Ensure good drainage around your home. Water should always be directed away from your foundation to prevent issues related to soil expansion or erosion.
Monitor landscaping: Be mindful of tree placement. Trees with large, aggressive root systems planted too close to your home can cause foundation troubles.
Address minor issues promptly: Small cracks or signs of wear should be addressed before they turn into major problems. Sometimes, a small fix now can prevent a costly repair later.

Record Keeping

Documenting all you can about your foundations will assist any claim you make and help ensure a smooth process that goes in your favor.

Maintain a home maintenance log: Keep a detailed log of all inspections, maintenance, and repairs done on your property. Note dates, descriptions of the work, and the professionals who performed it.
Save receipts and contracts: Store all receipts, contracts, warranties, and any other documents related to home repairs or improvements. These records can be invaluable when making an insurance claim.
Document changes: Before-and-after photos, along with a record of the work done, can help demonstrate proactive maintenance and care of your property.

Conclusion

Understanding the ins and outs of your homeowners insurance policy and taking proactive measures to maintain your home is essential. These steps can help safeguard your property against the risk of foundation cracks and the damage they can cause.

Here’s a recap of the main points.

Recognize the types of cracks: Distinguishing between minor and major foundation cracks is essential. Minor cracks often represent natural aging, while major cracks could be a sign of serious structural issues.
Navigate the claims process: Get up to speed with the claim filing steps, from documenting the damage and reviewing your policy to engaging with adjusters and understanding their assessments.
Understand your insurance coverage: Knowing what your homeowners insurance covers, and equally importantly, what it excludes, is crucial. This knowledge can significantly influence the outcome of your claim.
Prioritize regular maintenance: Regular inspections and addressing minor issues promptly can prevent larger, more costly problems down the line. Maintenance isn’t just about preservation; it’s a key factor in ensuring that your insurance claim is valid and successful.

By staying proactive, you protect your property and equip yourself with the necessary knowledge and documentation to manage potential insurance claims successfully. Remember, a well-maintained home and a well-understood insurance policy are your best defenses against the unforeseen challenges that foundation cracks can present.

Reviewed by Kristopher Kane

Kristopher Kane is a career freelance writer with over 15 years of experience and a broad portfolio encompassing various topics within the insurance industry. He has written for both B2B communication and consumer-level customer engagement.

Cracks in Foundation and Homeowner’s Insurance