Foundation repair – how home insurance will help

When does home insurance cover foundation repair?

Foundation damage doesn't just happen by itself – something causes it. If your home insurance covers whatever caused the foundation damage, then it'll pay out for the foundation repairs too. Your product disclosure statement (PDS) will tell you everything your policy covers. Common inclusions are:

When won't home insurance cover foundation repair?

If your home insurance doesn't cover the event which caused the foundation damage, then it won't pay out for the repairs. What's covered by your policy will vary between different insurers – but some common exclusions are:

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FAQs about foundation repair

• How much does foundation repair cost?

  Most foundation repairs cost somewhere between $5,000 and $35,000. However, the cost of fixing damaged foundations can vary depending on lots of different factors, including the extent of the damage, what caused the damage and how easy it is to gain access to your home's foundations.

• Does home insurance cover cracked walls?

  Your home insurance may cover the cost of repairing cracked walls, if the cracks were caused by an event that you are insured for.

  For example, if a broken pipe caused flooding, which ultimately lead to cracks in the walls, your home insurance would likely cover the cost of repairs. However, if the cracks were due to drought or moving soil, it's unlikely you would be covered.

• Is restumping covered by home insurance?

  Usually, houses need restumping due to age, termite damage, or soil movement. In those cases, it's unlikely your home insurance will cover the cost.

  However, if the stumps have been damaged by an insured event – for example, a pipe burst and caused significant water damage – you might be covered for restumping costs.

• Is underpinning covered by insurance?

  Unfortunately, underpinning is not generally covered by home insurance because it's usually used to prevent, not repair, damage.

• Does home insurance cover structural problems?

  No, home insurance typically does not cover structural problems. It's also unlikely that your home insurance will cover any defects in design, materials, workmanship or construction.

• Does building insurance cover subsidence?

  If the subsidence was caused by an event covered in your home insurance policy, then you'll probably be covered for the cost of repairs. For example, if a severe storm and heavy rain causes subsidence, your home insurance should pay out.

  However, if the subsidence is caused by poor workmanship or nearby construction, it's unlikely you'll be covered by your home insurance.

• Is slab heave covered by home insurance?

  Slab heave is generally a result of soil movement which home insurance doesn't usually cover, unless it was due to an insured event like a storm or earthquake.

  Home insurance is also unlikely to help out if slab movement was caused by poor workmanship. If this has happened to you, it's worth speaking to the builder. Their builders warranty insurance might be able to help but only in certain situations.

• Does home insurance cover foundation leaks?

  Home insurance can cover foundation leaks but only if they're the result of an insured event like a flood, fire or storm. If the foundation leak is down to poor workmanship or gradual deterioration, your home insurance policy is unlikely to cover you.