If you are a new homeowner, you may be worried about many different aspects of your new home including what your Homeowners insurance covers and what it does not. One of the things that could possibly go wrong in your home is foundation cracks and leaks. You’re probably wondering whether your Homeowners insurance covers foundation leaks too.
First, you must understand that damage to your concrete foundation such as settlement and cracks does not only have serious ramifications on the structural integrity of your home, getting them repaired can also be very expensive. Depending on the severity of the damage and the repair method to be used, it could cost thousands of dollars to get the foundation problem fixed. While just like many other homeowners, you could be thinking that your Homeowners insurance may be your saving grace, you may be shocked at your discovery.
There are many factors that determine whether the Homeowners insurance will cover a foundation leak repair. In some situations, yes, and sometimes, no. Most of the time, the cause of the foundation leak is the major determinant. Once the cause of the foundation leak has been identified, knowing whether or not the Homeowners insurance will cover the repair will be easier. For further information, be sure to click “visit website.”
How can you tell if you have a foundation leak?
Before you begin to worry about what is covered by your Homeowners insurance or not, it is important to verify if you are dealing with foundation leak repair in the first place. The following are some of the signs that your foundation may be leaking:
- There’s a sudden spike in your water bill
- You notice a reduced water pressure
- You notice a mold or mildew smell
- there’s water pooling inside or outside your home
- The flooring is wet and damaged
- You can hear rushing water
What water damage is covered in Homeowners Insurance?
There are a few situations in which foundation leak repair can be covered by Homeowners Insurance. However, there are times when the insurance won’t cover them. Below are some of the specific situations in which your Homeowners Insurance will cover foundation leaks.
Conditions under which foundation leak repair are covered by Homeowners Insurance include:
- When there is a plumbing leak in the soil around the foundation of your home, erosion may occur which ultimately leads to a crack in the foundation. Over time, the crack will start to leak through the foundation into your home. In this kind of situation where the problem is as a result of water damage, the foundation leak repair will be covered by the Homeowners Insurance.
- Freezing can cause a pipe to burst even though you may have run the heat in an attempt to prevent this occurrence. If the foundation leaks were caused by frozen pipes that got busted in your failed attempt to prevent the pipes from freezing at all, your Homeowners Insurance will cover the foundation leaks.
- The coverage of Homeowners Insurance is only limited to the water damage caused by the foundation leak repair and the exact expenses associated with fixing the leak itself. However, the policy will not cover the replacement of the pipe.
As a result of changing temperatures, clay soil tends to expand and contract. If pipes installed in such soil get busted and result in foundation leaks, the Homeowners Insurance will not provide coverage for such damage. Such a foundation leak is referred to as earth movement. Homeowners Insurance does not cover such peril.
There are many other causes of foundation leak repair that are excluded from Homeowners Insurance. You may need to read carefully through your policy to find out what is covered and what is not. Any other questions you have after reviewing your specific policy can be answered by your insurance agent.
When Homeowners Insurance does not work
Since the Homeowners Insurance does not cover some kinds of issues related to foundation leaks, you may want to consider a different policy that provides coverage for the specific issue of your foundation. For example, there are regions where you are protected by catastrophic ground collapse coverage. In the event of earth movement, such as when the leak was caused by the expansion and contraction of the soil, this kind of policy protects you from foundation leaks.
However, you must note that there is no single insurance policy that covers all forms of repairs when there is a foundation leak repairs. For example, you can’t get any Homeowners Insurance that covers broken pipes. In such situations, you will have to be responsible for the expense.
You are not likely to get much help from your Homeowners Insurance if the problems with your foundation can be traced to the use of inferior materials or defective construction. There are builders who offer as high as ten-year foundation warranties that cover materials, labor, and structural defects. You should take some time to check if there is a warranty on your home that is still in effect. Read through it carefully to find out what is covered.
If you plan to buy a home, it is important that you engage a professional to inspect the foundation. Doing this will save you a lot of money and save you the stress of having to do a lot of repairs before assuming ownership of the property.
Also, if you’ve had foundation repair done for you in the past, you can reach out to the repair company. There are even some foundation repair companies that offer lifetime warranties.
Other Financing Options
If the nature of your foundation damage does not fall within the coverage of your Homeowners Insurance and your emergency fund is not fat enough to fund the repair, there are a few other financing options that you can explore. Foundation repair companies offer different flexible payment plans and sometimes with reduced interest rates.
If you’re wondering how much it would cost to repair a foundation leak, according to HomeAdvisor, the cost to repair a foundation leak can range from $630 to $4,400 with the average repair cost hovering around $2,000.
As soon as you see signs of a foundation leak repair, you should call a professional foundation repair company. If addressed as early as possible, you will be preventing the problem from deteriorating into more difficult structural issues in the future.
Should there be additional damage to the foundation of your home because of your delay in the repair, it may be difficult, if not impossible, to get your insurer to pay the claims for the costs of repair.
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