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Foundation Repair: What is and is not Covered by Homeowners Insurance

Foundation repair can be a contentious topic when discussing what costs insurance companies are willing to cover and what they put on you to pay out of pocket. Foundation damage can be covered by homeowner’s insurance, the tricky part is the scope of coverage and what insurance companies can cover based on their specific policies. Damages that can be covered by your insurance are claims that they “accept” and those that are not, are claims that they “reject”. For example, damage to your foundation due to big natural disasters such as wildfires or tornadoes is a claim that would be accepted by all homeowner insurance companies. Damage due to disasters, such as floods or earthquakes would be rejected by insurance companies because they are considered “too risky”.

Here is a list of claims that are generally accepted by most homeowner insurance policies:

1. Lightning or fire
2. Windstorm
3. Vandalism
4. Falling objects
5. Damage caused by vehicles
6.  Civil disturbances/Riots

Those claims listed above are out of the homeowner’s control and therefore will be covered by most homeowner insurance policies. Homeowner insurance policies will typically cover up to $250,000 and potentially more. The good news is, even the largest foundation repair job to your residence will not exceed $100,000 in most cases. On the flip side, policies that will most likely be rejected by your insurance company are unfortunately the most common causes of foundation damage, such as:

1. Poor construction
2. The natural settlement, bulging, cracking, shrinking, or expansion of your foundation
3. Pressure from tree roots
4. Earthquakes and floods

When it comes to poor construction, natural movement of the foundation or pressure from tree roots, you as the homeowner are held liable due to what insurance companies call negligence. For example, bad construction should be recognized by the homeowner and corrected without bringing in the insurance company, natural settlement and tree root issues are also meant to be noticed and handled by the homeowner. A good rule of thumb for those instances where you are held liable, make sure your property is properly graded, the plants and shrubbery are moved away from the base of your home to at least 5 to 10 feet, and make sure you take precautions to address the inevitable settlement of your home. Doing these three tasks will help the cost of your repair be as minimal as possible in the event damage occurs. Earthquakes and floods are a special claim because they usually have their own separate policy that is covered on their own. Unless you have that separate claim as part of your policy, the damage repair will come out of pocket without help from your homeowner's insurance policy.

How to Address Damage With No Insurance Coverage

Considering most of the common causes of foundation damage are not covered, hiring a trusted foundation repair contractor is the best alternative. Carolina Foundation Solutions is a trusted foundation repair company that emphasizes the importance of only providing you with solutions that fit your needs. To provide the best service that we can, as well as options for all our customers, and to make the repair process as easy as possible, Carolina Foundation Solutions offers various methods of payment. In addition to traditional methods of payment (cash, checks, and credit cards) Carolina Foundation Solutions offers pay-as-you-go options and traditional low fixed interest rate loans with our partnership through GreenSky®. For more information on our financing options click bit.ly/CFSFinance. These available financing options allow us to complete the repair no matter the extent while simultaneously not being a burden on your wallet. With over 100 years of combined expertise, CFS will always have your best interest at heart.

If you are held liable by your homeowner’s insurance policy rest assured that Carolina Foundation Solutions will help you find an affordable way to address the damage. Call us at 877-770-7050 or go to bit.ly/CFSConsult to schedule a FREE inspection today!