Will homeowners insurance cover foundation repair depends on what cracked it. A foundation damaged by a covered peril, a plumbing line that burst beneath it, a tree that fell on the house, a vehicle that hit it, is covered; a foundation that settled, heaved on expansive clay, shifted in a drought or was poorly built is not, because settling and earth movement are excluded from every standard form. The cause decides, and the carrier will send an engineer to find it. The Insurance Information Institute's NAIC-based figure puts the average US homeowners premium at $1,411 for 2021, and the average renters premium at $170; both are national averages that no single household pays, and the rate pages on this site show what carriers actually file where you live.
Covered causes
Sudden and accidental water damage from a burst supply line under the slab, on forms that cover it; fire; explosion; a falling object; a vehicle or aircraft; and, where the policy or an endorsement adds them, sinkhole collapse and earthquake. The repair of the foundation and the damage above it is paid above the deductible.
Excluded causes
Settling, cracking, shrinking, bulging or expansion of the foundation; earth movement including expansive soil, drought shrinkage and landslide unless endorsed; poor workmanship and design; wear and deterioration; and gradual water seepage. These are the commonest foundation problems and none is insured on a standard form.
What to do
Document the cracks and the timeline, stop the water if a leak is suspected and keep the plumber's report, and let the carrier's engineer assess the cause before agreeing a repair. The III reports that 5.5 percent of insured homes had a claim in 2022, so most policy years end with nothing paid out and the price is paid for the year something is. Foundation movement on clay soils is a maintenance and construction risk the policy leaves with the owner.
Questions people ask about will homeowners insurance cover foundation repair
Will homeowners insurance cover foundation repair from a slab leak?
On forms that cover sudden water damage, yes: the leak's damage and access to the pipe, above the deductible.
Does it cover settling or expansive soil?
No. Earth movement and settling are excluded on every standard form.
Is earthquake damage to the foundation covered?
Only with an earthquake endorsement or separate policy.