A homeowners insurance policy contains many coverages for accidents and property damage that can occur to a home. A policy will also include exclusions or perils that an insurance company does not want to cover. One type of coverage that is typically excluded on a policy is repair that needs to be done when damage occurs to a foundation. However, a homeowners policy will cover foundation repair for certain types of perils that are not excluded on the policy or when specific coverage has been added.
Exclusions
All types of homeowners polices contain exclusions for events or perils that an insurer does not want to cover. One type of exclusion is for damage caused to a house's foundation. Insurers typically exclude this coverage because there can be many causes for problems that can occur with the foundation of a house. One such problem is water seepage or when the ground beneath house settles causing part of the foundation to drop. The exclusions sections of a homeowners policy will list all perils that are not covered by the policy.
Covered Perils
A homeowners insurance policy has many covered perils that will pay for some types of repairs when damage occurs to the foundation of a house. One type of peril that is covered by a homeowners policy is for burst pipes. Water from burst pipes can sometimes cause damage to a house's foundation. When this happens the coverage provided by a homeowners policy will pay to repair any damages that occur as the result of water from the burst pipes.
Endorsements
An insurer that provides a homeowners insurance policy can have many different types of endorsements that can be added to the policy. There may not specifically be an endorsement for foundation repair because that is not a specific peril. However, there are endorsements for certain perils that can cause various types of damage to a home. One type of endorsement is for backup of sewers and drains or mine subsidence if underground mines are in the surrounding area. This means that when a foundation is damaged by any of these perils the cost of the repair will be covered by the endorsement.
Other Policies
Most insurers dot not provide coverage for foundation repair because coverage can be provided by additional insurance policies that can be purchased. Depending on where a home is located certain types of insurance polices may be required to be purchased by the home owners. This can include homes that are located in a flood hazard area or areas that have earthquake activity.
Litigation
If damage occurs to a home's foundation and an insurer denies a claim litigation may be required to solve the dispute. Actions of another person or entity can sometimes cause an insurer to deny an insurance claim. This is because an insurer can claim that certain actions are excluded by the homeowners policy, which can provide the insurer with a reason to deny coverage. When this happens individuals may need to seek legal help to receive payments from their insurer.
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