Will Home Insurance Cover Foundation Repair?

Your standard policy for home insurance in Ontario is designed to cover your property, and likely your greatest asset, against “perils.” In insurance terms, a peril is a chance event that is accidental and unexpected. Essentially, your home insurance is a promise that if something terrible happens, your insurer will be there for you to help financially compensate you so that you can go back to life as normal.

Unfortunately, home insurance isn’t so cut and dry that everyone knows what they’re covered for 100%. See, the insurance sphere can be confusing for those who aren’t already in it, and for policyholders, we’re often content with just knowing the bare minimum. We highly recommend familiarizing yourself with what your policy does and doesn’t cover.

This series was created to help policyholders understand what kind of things are commonly included in home insurance and what may not be. Unlike car insurance, home insurance is not mandated, and therefore there’s no “standard” for what is/isn’t included. In this article, we address whether your standard home insurance policy will include coverage for foundation repair.

What kind of perils could damage a home’s foundation?

A home’s foundation is the load-bearing section of the total structure, which may be built below ground or just resting on it. Your home’s foundation needs to be sturdy enough to support the above structure, keep out groundwater, and act as a barrier to soil and water vapour.

Water damage is on the rise in Ontario. Water damage leaves a home’s foundation especially vulnerable, since overland flooding and excess spring water runoff targets our foundation first, possibly seeping through and entering through our home’s lowest floor: the basement. Foundations can be especially vulnerable to shifting soil, which can permit water to enter easier.

Things that can damage a home’s foundation include:

• Poor construction
• Shifting soil
• Soil erosion
• Earthquakes
• Excessive moisture
• Inadequate drainage

Not all these causes of damages may be covered by your home insurance. Let’s get into what your home insurance may cover, and what it won’t.

When will home insurance cover foundation repair?

Your home insurance will cover your foundation, as it’s included in your policy like any other part of your home. However, some causes of foundation damage are not included in your home insurance policy. Your home insurance policy will cover you for any damages considered unexpected or accidental. It will cover your home’s foundation if it were damaged unexpectedly by fire, theft or vandalism, lightning, damage by aircraft or vehicle, falling objects, ice damming and storms, wind damage, etc.

On the other hand, some causes may not be covered by a standard home policy, but could be covered so long as you have purchased the necessary endorsements/add-ons. Examples include:

If you had overland water & flood insurance, any flooding or surface water entering a home may be covered, and so would the costs to repair your foundation.

If you have earthquake insurance, earth movements causing cracking or shifting to your home’s foundation would also be covered.

Discuss endorsements and add-on coverage with your broker to see if they’re a worthy addition to your existing policy.

When won’t home insurance cover foundation repair?

It’s easier to answer the question “when won’t home insurance cover foundation repair?” than to answer what it does cover. Ultimately, if your home’s foundation failed or was damaged due to natural settling, bulging or expansion, shrinking, cracking, etc., pressure from tree roots, or even just faulty construction, you wouldn’t be covered.

If the issue can be chalked up to the homeowner’s negligence, it won’t be covered. In a home insurance agreement, you as the homeowner are supposed to be managing the wellbeing or maintenance of your own home, and so any issues that arise due to neglect or poor management will fall to you to cover.

How do you prevent foundation damage?

As the homeowner, you are the one responsible for looking after your own home. There are some ways you can take preventative action to protecting your home’s foundation. The most common reason why a foundation might be damaged or see issues is due to shifting. Always ensure your home has a sufficient system in place to manage water when there is heavy flooding and rains to prevent moisture from getting trapped in your soil.

Preventing water damage to your home begins at the foundation. Ensure that your downspouts are pointed away from the home so that any excess water is drained away from your home, and ensure that your soil is draining properly and water isn’t simply building up.

On the other hand, droughts can be damaging to your home’s foundation, too. Have a system in place to occasionally water your yard to retain an adequate level of moisture. A foundation specialist may be able to give you additional tips on how to understand these systems for your property, and how to best maintain the place where you live.

You may also consider scheduling an inspection of your prospect home prior to moving in, to avoid the risk of poor construction becoming an issue later down the line. Since poor construction is not covered by home insurance, you will want to check out every aspect of your home before you move in to ensure you won’t be held responsible for damages.

If the cause of damage to your home’s foundation is covered, file a homeowner’s claim. If you have any further questions, like how to file a claim or whether something is/isn’t covered by your home insurance policy, don’t hesitate to contact us here at Excalibur Insurance.