Does Insurance Cover Structural Damage? Foundation Repair Answers You Need

Your house feels solid—that is, until you spot a split in the drywall or a door that won't close right. Foundational problems freak out any homeowner, not just because they're serious, but because repairs are expensive. First question: will your insurance bail you out? Spoiler—it's not as clear-cut as you'd hope.

Most homeowners are surprised to learn that insurance rarely covers the full cost of foundation repairs. A lot hangs on how the damage happened. Was it a burst pipe under your slab? There's a chance you might be covered. Did the foundation settle slowly over years? That's usually on you. Knowing what triggers coverage matters—and it can mean thousands saved or lost.

Before you panic (or celebrate), grab your policy and look for two sections: perils covered and exclusions. You need to know what your insurer thinks counts as a "covered loss." Each company uses different words, but the small print is where you'll either win or lose the claim battle. Don't just guess; asking your insurance agent straight up is fair game, and honestly, it's the smartest move before foundation work even starts.

• What Counts as Structural Damage?
• When Does Insurance Pay for Foundation Repair?
• Common Scenarios Insurance Won’t Cover
• What Insurers Look For in a Claim
• How to Boost Your Chances of Coverage
• What to Do If Your Claim Gets Denied

What Counts as Structural Damage?

When it comes to insurance, not every crack or slant in your house counts as structural damage. Insurers usually call something ‘structural’ when it affects the main parts that keep your house standing. That means your foundation, load-bearing walls, beams, roof structure, and sometimes the basement slab. If these parts are hurt, the safety or stability of your place is at risk.

Here's what insurance companies often see as structural damage:

• Large cracks wider than 1/4 inch in foundation walls or basement floors
• Doors and windows that suddenly won’t close because of shifting walls or floors
• Floors that slope or sink in certain spots
• Basement or crawlspace walls bowing inward
• Broken or split support beams or floor joists

Hairline cracks or minor settling is usually not a big deal for most insurers. They're looking for stuff that points to serious movement—problems that keep getting worse or make your home unsafe.

Need a quick way to tell if it might be serious? If the problem affects how your home sits on its foundation or makes it unsafe to use rooms, insurance will at least want to look at it.

Check out how often homeowners report structural problems:

Type of Structural Problem	% of Reported Home Claims (2024 US Data)
Foundation Cracks	35%
Slab Movement	21%
Bowing Basement Walls	15%
Leaning Chimneys	6%
Major Joist or Beam Failure	11%
Other (Interior Wall, Ceiling Collapse, etc.)	12%

Not every insurance policy uses the exact same definition, so check your policy language if you’re not sure. But remember, when structural damage hits those main load-bearing areas, it’s usually a bigger conversation with your insurer. If it’s not one of those major pieces, don’t expect much help.

When Does Insurance Pay for Foundation Repair?

This is the million-dollar question, right? Homeowners insurance isn’t a magic fix for all foundation issues. The key thing to know is that most policies only cover “sudden and accidental” events, not regular wear and tear. Here’s how that usually plays out.

• Insurance often steps up when your foundation damage is caused by a covered peril. Think fires, plumbing leaks, or sudden explosions. For example, if a busted water pipe under your home floods the slab and shifts it, there’s a solid chance your insurer pays for both the pipe and the related foundation fixes.
• Earthquakes and floods? Most standard policies won’t touch those. You’d need extra coverage for that, like earthquake or flood insurance. Without those add-ons, you’re on the hook.
• If a tree crashes through your roof during a storm and messes with your foundation, insurance usually comes through, since that’s a sudden, covered event.
• But if your foundation settles because the soil keeps moving under your house, that’s seen as a maintenance problem and is almost never covered.

Here’s a quick snapshot showing what’s typically covered and what isn’t:

Cause of Damage	Usually Covered?	Notes
Burst plumbing pipe	Yes	Sudden and accidental, but you’ll need proof it was unexpected
Flooding (natural disaster)	No	Requires separate flood insurance
Earthquake	No	Needs earthquake policy add-on
Tree fall during storm	Yes	Covered as storm damage
Normal wear and tear	No	Considered homeowner maintenance

Always check your policy wording. Some insurers flat-out exclude all foundation repairs, while others have surprise loopholes about water and soil movement. If you’re not sure, ask your agent for examples using real situations, so you know what’s actually covered before disaster strikes.

Common Scenarios Insurance Won’t Cover

If you’re hoping your insurance company will cover every kind of structural damage, brace yourself. Most foundation repairs hit a wall with insurance adjusters. Why? Insurance is all about those dreaded 'covered perils.' If your problem doesn’t fit, you’re paying out of pocket. Let’s get specific about what doesn’t make the cut.

• Normal settling or earth movement: Your foundation will shift a bit as the soil underneath settles. Insurance companies see this as a basic part of homeownership, not an accident or disaster. Unless your policy has a rare special rider, you’ll pay for this yourself.
• Flooding and water seepage: General flooding isn’t covered under standard policies. Water that oozes in during a heavy rain, rising groundwater, or leaks from bad drainage? Pretty much always excluded unless you have separate flood insurance.
• Poor construction or home maintenance: If the foundation fails because the builder cut corners, or you ignored those little cracks for years, the insurance company will walk away. They expect you to stay on top of maintenance and fix small problems before they escalate.
• Tree roots and vegetation: Got that big oak too close to your home? If its roots shift the foundation, good luck arguing that with your adjuster.
• Pest or vermin damage: Bugs, termites, or burrowing critters weaken foundations, but standard coverage excludes damage from pests and rodents.

According to the Insurance Information Institute, "Standard homeowners policies do not cover damage caused by settling, cracking, bulging, or expansion of foundations."

To put it into perspective, here's how common scenarios stack up with standard policies:

Scenario	Usually Covered?
Slow settling, age-related cracks	No
Flooding from storms or groundwater	No (need flood insurance)
Termite or pest-induced damage	No
Plumbing leaks causing sudden damage	Sometimes (depends on policy)
Earthquakes or sinkholes	No (need extra rider)

The bottom line: If your foundation issue came from slow, natural causes or neglect, your insurer won’t cover it. If you’re not sure, press your insurance agent for concrete answers before cracks get worse. Being proactive beats wishful thinking every time.

What Insurers Look For in a Claim

Insurance companies don't just hand out checks for every crack or crumbly slab you spot. They’re picky. You’ll need to prove both the cause and the extent of the structural damage, and insurance folks are going to dig into every detail. Their goal: Only pay for damage that falls under one of the official "covered perils" listed in your policy. Forget normal wear, bad construction, or settling over time—those are almost always excluded.

Here’s what most insurers zero in on:

• Cause of damage: Was there a sudden event, like a burst pipe, fire, or severe weather? Or was it slow settlement, tree roots, or poor drainage? Fast, accidental events are more likely to get covered.
• Timing: Did you report the problem right away? Insurers get cranky if you spot an issue and wait months to say something—delays can count against you.
• Maintenance records: If you haven’t kept up with regular home maintenance, they’ll use it to deny your claim. Stuff like ignoring leaks or letting gutters overflow won't help your case.
• Expert evaluations: They’ll usually send out their own adjuster or engineer to inspect the damage. Sometimes they’ll want to see reports from a structural engineer you hired too.
• Documentation: The more photos and written records you have (before and after damage), the better.

Most insurance adjusters work with a checklist during the claim process. Something like this:

Checklist Item	What They're Checking
Proof of covered peril	Is the cause of damage actually listed in your policy?
Date of loss	Did you report the issue quickly after it happened?
Visible damage	Documented photos, expert reports, and a site inspection
Maintenance history	Have you fixed past problems or ignored warning signs?
Claim history	Have you filed similar claims recently?

One survey found that over 60% of foundation claims are rejected because the damage was chalked up to normal settling, erosion, or neglect. It pays to protect yourself with clear records and fast action. If you think your issue is a covered peril, gather proof from the start. Snapping photos, jotting down when things happened, and keeping any repair receipts—this all shows you’re on top of things, not just hoping for a quick payout.

How to Boost Your Chances of Coverage

Most people find out too late that getting their insurance to cover structural damage is a bit of a battle. But there’s stuff you can do up front to shift the odds in your favor. Here’s the real-world playbook if you’re trying to get those repairs paid for.

• Document Everything Early. The minute you spot cracks, shifting, or funky doors that won’t close, snap photos. Take clear shots from different angles and keep a timeline. If you have before-and-after pics, even better.
• Call a Professional Fast. Don’t put off having a licensed foundation contractor or structural engineer check things out. Insurance wants expert assessments. Get a written report—they carry more weight than your own notes.
• Report Water Leaks or Flooding ASAP. If the damage follows plumbing issues, leaks, or storms, tell your insurer right away. Waiting even a few weeks can give them an excuse to deny your claim.
• Dig Up Old Inspection Reports. Lenders almost always get a home inspection before you buy—find that paperwork. It’s proof the issue is new, not something ignored for years.
• Read Your Policy Closely. Double-check what’s actually covered. If it says "sudden and accidental," make sure your paperwork and expert’s report use those magic words.

It also helps to know what insurance companies look for. Here’s what most of them want to see before they’ll even consider a payout:

What Insurers Want	Why It Matters
Detailed cause of damage	Shows if damage is covered or excluded
Date/timeline of events	Proves the damage lines up with a covered event
Expert’s written assessment	Confirms the cause isn’t gradual wear
Photos and videos	Backs up your story—visual proof counts
Proof you did maintenance	Shows you weren’t just ignoring problems

Sometimes, you just need to hustle. Stay organized. Follow up with your adjuster. Keep every email and receipt. If they turn you down, ask for the denial in writing. That makes it easier to appeal, or even push back if you think they got it wrong. The bottom line—being prepared and quick to act is your best insurance against a denied claim.

What to Do If Your Claim Gets Denied

If you get that dreaded denial letter, don’t just toss it aside and resign yourself to a huge bill. It happens a lot—according to the National Association of Insurance Commissioners, around 10% of all homeowners claims get denied on the first go. The good news? You’ve got solid steps you can take to fight back.

1. Review the Reason for Denial. Insurance companies have to give you a reason. Check if they’re citing policy exclusions, missed deadlines, lack of evidence, or something else. Grab your policy and compare their reason to what it actually says.
2. Gather More Evidence. Sometimes claims get denied simply because the insurer thinks you don’t have enough proof. Collect photos, repair estimates, inspector’s reports, and before-and-after shots. The more detail, the better.
3. File an Appeal. Almost every company lets you appeal a denied claim, but watch those deadlines. Many states require appeals within 30 to 90 days.
4. Get Pro Help. If you’re feeling lost, consider a public adjuster. These folks work for you, not the insurer, and can re-evaluate your claim. Attorneys who specialize in insurance disputes can also step in if things get ugly.
5. Ask for a Second Inspection. Maybe the insurer’s inspector missed something. You can request a fresh set of eyes—sometimes bringing in your own engineer or contractor helps push your case.

Ever wonder how successful people are when they push back? Check out this quick table with recent stats on claim disputes:

Action	Chance of Overturning Denial
Internal Appeal	20–30%
Public Adjuster Involvement	35–45%
Legal Action	50%+

Last tip—always keep communication in writing and take notes on who you spoke to and what they said. If you end up in mediation or court, a paper trail can be your best weapon. Don’t roll over at the first “no.” Insurance companies bank on people giving up. Stay organized, keep pressing, and you just might turn that denial around.