How Can Insurance Help Pay for a Home’s Structural Issues?
When you think of problems around the house, you might think of a leaky roof, electrical issues or a broken furnace, but the real trouble comes if your house has foundation problems. Even seemingly-minor house foundation problems can lead to total collapse under the wrong circumstances, which is why they need to be addressed ASAP.
The issue many homeowners run into is paying to address foundation problems. After all, they’re not exactly cheap fixes. Continue reading to learn more about what homeowner’s insurance does and doesn’t cover when it comes to the foundation.
When does homeowner’s insurance cover foundation issues?
Generally speaking, the only time your insurance covers house foundation problems is if the damage is caused by water damage. For example, an underground leak that erodes the foundation is considered a covered peril, but a structural problem caused by an earthquake wouldn’t be covered.
When would insurance cover a collapse?
Collapses due to a homeowner’s negligence are never covered by an insurance policy. These are the only circumstances that you might get coverage in the event of a collapse:
- Unexpected or surprise incidents: We’ve seen homes collapse out of the blue due to extensive termite damage. In this case, or any time a collapse occurs unexpectedly, homeowner’s insurance policies cover the collapse.
- Accidents: Say you hire someone to renovate your home, and they make some catastrophic mistake that leads to collapse. Hopefully, the contractor has insurance that would pay to make all repairs; if not, your insurance policy should have you covered.
- Weather damage: While your insurance policy doesn’t cover all weather-related incidents, it might if the roof collapses after heavy snowfall or tons of ice accumulation. After all, these situations are unforeseen and unavoidable.
How much will I owe if insurance covers the issues?
The amount you’ll have to pay out of pocket depends on the type of insurance policy you have. After paying your deductible, you’ll be responsible for any amount exceeding your policy’s limits. For that reason, it’s crucial that you shop around for a policy that meets your needs. If you live in an older home and are worried about the cost of fixing house foundation, it may be worth investing in a policy with a higher coverage limit.
What covers structural issues if my homeowner’s insurance doesn’t?
As we touched on above, no policy will pay for damages that can be traced back to failure to maintain your home. If your current insurance policy doesn’t mention anything about foundation troubles caused by natural disasters, you should look into an earth movement insurance policy. These policies cover any damage caused by earthquakes, landslides or any other type of soil movement.
Hire our team to get an inspection today
If you’re considering purchasing a new home but are worried about the cost of fixing house foundation, contact High Plans Engineering & Consulting, LLC to get a house inspection. With decades of industry experience, you can trust that our licensed engineers will find any structural problems, and we can even help set those problems straight.
Categorised in: Home Foundations