Is Foundation Damage Covered by Homeowners Insurance?

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A typical homeowners insurance policy will insure your foundation against some sudden perils like fire and windstorms. However, foundation damage is usually caused by more gradual perils that aren’t covered by homeowners insurance.

Keep reading to learn more about when home insurance covers foundation repairs and what steps you can take to prevent foundation damage in the first place.

Key Takeaways

  • Your dwelling coverage should insure your home’s foundation against any peril that is not named in the policy as an exclusion.
  • Some of the most common sources of foundation damage are likely to be excluded from homeowners coverage including gradual damage due to soil expansion or contraction, erosion, faulty construction and sinkholes.
  • A standard homeowners insurance policy doesn’t cover flood or earthquake damage to your foundation unless you purchase extra coverage.
  • If your foundation experiences damage that isn’t covered by your insurance policy, you can expect to pay around $5,000 for repairs on average.

Will Home Insurance Cover Foundation Issues?

Your home’s foundation is generally covered by the dwelling insurance portion of your homeowners insurance policy along with other parts that make up the structure of your home such as walls, floors, support beams, windows and your roof.[1] However, homeowners coverage usually only insures your foundation against certain sudden sources of damage and may not cover some of the more common sources of foundation damage.

When Does Home Insurance Cover Foundation Repairs?

A standard HO-3 insurance policy should cover your foundation on an open peril basis, meaning you can file a homeowners insurance claim for any source of damage unless it is specifically mentioned in the policy as an exclusion. Examples of perils that are commonly covered include the following:

Fire or lightning


Windstorm or hail

Volcanic eruptions


Falling objects

Riot or civil commotion

Weight of ice, sleet or snow

Damage by aircraft

Water/steam discharge from home systems and appliances

Damage by vehicle

Sudden/accidental tearing, cracking, burning or bulging of home systems


Freezing of home systems

Vandalism or malicious mischief

Sudden/accidental power surges

In addition, if a covered peril damages your foundation so severely that you cannot safely live in your house until the foundation has been repaired, then your loss of use coverage will help you pay for additional living expenses like hotel stays and restaurant meals.

When Your Insurer Won’t Cover Foundation Damage

Your policy will likely exclude coverage for wear and tear or other types of gradual damage. This includes some of the most common sources of foundation damage such as soil becoming too wet and expanding or becoming too dry and contracting, improper construction, soil erosion due to poor drainage and sinkhole formation.[2] Other common causes of damage that likely won’t be covered include uneven soil usage, tree roots and temperature changes.[3]

Do I Need Additional Coverage for My Home’s Foundation?

To receive more comprehensive protection for your home, you should consider buying additional flood insurance and earthquake insurance. Standard homeowners insurance policies don’t cover floods and earthquakes like they do most other natural disasters. As a result, it may be worth buying extra coverage if you live in a region that is prone to these perils due to the significant amount of damage they can potentially cause to your foundation.

How To Prevent Home Foundation Damage

Since home insurance doesn’t cover foundation repair in many situations, it’s best to keep serious damage from happening in the first place by setting up a drainage system around the exterior of your home that prevents unnecessary or excessive water damage, according to Rafi Friedman, president of Coastal Luxury Outdoors.

“You should make sure your gutters and downspouts are in good shape and are doing an adequate job of channeling water away from your home when it rains,” Friedman said in a message to SmartFinancial. “The grade of your yard also plays a role. Ideally, your home’s foundation should be the highest point in your yard, with everything sloping away from it to encourage runoff.”

Signs of Damage to Your Home’s Foundation

If you notice any of the following around your home, it is possible that there are already foundation cracks or other types of foundation damage that should be checked out by a professional foundation repair worker:[4]

  • Cracked drywall
  • Gaps between your walls and static structures like windows, doors, counters and cabinets
  • Uneven flooring inside of your home
  • Leaning chimney
  • Large cracks in your walls or floors
  • Multiple nails falling out of drywall
  • Warped floors or ceilings
  • Smell of mold or mildew in the basement
  • Water pooling near your foundation
  • Windows that won’t open and shut properly

How To Get Foundation Coverage for Your Home

You should compare prices from around three to five homeowners insurance companies so you can find a policy that will provide coverage for your foundation at the best price possible. Unfortunately, it can take a long time to individually reach out to multiple insurance carriers to request quotes.

However, you can streamline the process by letting SmartFinancial compare quotes for you. All you have to do is fill out a brief questionnaire and we’ll connect you with agents who can assist you in finding the best homeowners policy for your circumstances. To compare home insurance quotes at no cost today, click here.

Get a Free Homeowners Insurance Quote!


Does home insurance cover cracked walls?

Your home insurance company will help you pay to fix your walls if they crack due to certain covered perils like fire. However, damage caused by earthquakes and gradual sources generally won’t be covered.

Does insurance cover water coming through the foundation?

Homeowners insurance generally doesn’t cover house foundation repair due to foundation water leaks that can be attributed to flooding, earthquakes or any gradual source of damage.

How much does it cost to fix the foundation of a house?

On average, it costs about $5,000 to have the foundation of a home repaired without insurance coverage.[5]


  1. Kin Insurance. “Coverage A – Dwelling Insurance.” Accessed March 22, 2024.
  2. Foundation Professionals of Florida. “Top 5 Causes of Foundation Problems.” Accessed March 22, 2024.
  3. Allstate. “Does Home Insurance Cover Foundation Repair?” Accessed March 22, 2024.
  4. BAY Crawl Space & Foundation Repair. “10 Critical Signs You Might Have Foundation Issues.” Accessed March 22, 2024.
  5. Angi. “How Much Does Foundation Repair Cost? [2024 Data].” Accessed March 22, 2024.

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