Does home insurance cover foundation repairs?

Does home insurance cover foundation repairs?

Home insurance can help you pay for significant costs that can come with any foundation repairs that need to be made to your property. However, most policies will only cover you if the damage is caused by specific events like fire, lightning, and floods.

Foundation repairs can include things like crack filling, wall bracing, or preventing your house from sinking. However, with home insurance covering a wide range of events, it can be hard to know if your specific foundation repairs are included.

We’ve broken things down into the most common situations where home insurance will cover your foundation repairs.

When can home insurance cover foundation repairs?

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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Finder score 9 Excellent Qantas Home and Contents Insurance	Finder score 9 Excellent			Optional	Optional	Get a quote View details Compare product selection Compare	loading
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Is underpinning covered by home insurance?

Unfortunately, the typical answer is no. Underpinning can strengthen and stabilise an existing foundation, which can be particularly helpful if a property lies on weakened soil. But, because it is a preventative measure it generally won’t be covered by most home and content policies.

From our research of Australian providers we haven’t found any that cover underpinning. However, it’s always a good idea to consult with your provider and check the Product Disclosure Statement (PDS).

Is soil shift caused by floods covered by home insurance?

Soil shifts caused by floods may be covered by your home insurance, but it’s not always straightforward. Cover largely depends on whether the flood is seen as the immediate cause of soil movement.

Soil shifts can happen for a number of reasons like earthquakes, subsidence, or erosion.
If you can show that a flood directly led to events like landslides or erosion and your policy includes flood cover, you might be able to file a claim.

However, if the flood subtly altered the soil’s condition and it shifted later, your claim might be denied, even with flood cover. Insurers often have different definitions for covered events, which can make it tricky to determine what’s included. As in most cases, it’s important to carefully review a policy’s PDS or contact your insurer to clarify the specifics of your coverage.

What are my options if I'm not covered by insurance?

More often than not, if foundation damage happens to your property and the cause of damage isn’t covered by your insurance, you’ll have to pay for the repairs yourself. This can include any specialists or engineers to assess the damage and recommend repairs, so it can be a costly expense.

But before you decide to start the process, it can be helpful to reach out to a foundation specialist for a second opinion if your claim gets denied. For instance, if your insurer suggests that flooding was an indirect factor in causing the damage, a specialist might be able to clarify that it was, in fact, the direct cause.

FAQs

• Is foundation damage caused by a burst pipe covered by home insurance?

  Things like a burst pipe will typically be considered sudden and accidental damage by insurers. In this case, your foundation repairs may be covered by home insurance.

  If the damage is caused by leaks or poor maintenance, it will likely be considered gradual damage or wear and tear by insurers and won’t be covered.

• Are structural problems covered by home insurance?

  Home insurance typically won’t cover structural damage because it’s considered more of a long-term issue, rather than an unexpected event. This is because as a whole, home insurance policies are designed to help with sudden and unforeseen incidents, not problems that are pre-existing or developed over time.

• Does building insurance cover subsidence?

  Subsidence is usually only covered by building insurance if it’s caused by specific events. This can include storm, flood (if it’s an insured event), earthquake and tsunami. Depending on the insurer, this only be covered if it happens within a certain period of time.

  Loss or damage to your property that’s caused over time by shifting soil like subsidence won’t typically be covered.

Written by

Cameron Thach

Writer

With a background in writing across education, Web3, and finance, Cameron’s mission is to create content that speaks directly to readers in a way that’s easy to understand, helping them navigate complex topics with confidence. Cameron studied a Bachelor of Commerce, Economics and Marketing at Macquarie University, graduating in 2019. See full bio

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Nicola Middlemiss

Journalist

Nicola Middlemiss is a journalist with nearly a decade of experience in personal finance and insurance. She has contributed to Domain, Yahoo Finance, Money Magazine and Insurance Business Australia, offering in-depth insights into commercial insurance in the Australian market. Nicola holds a Bachelor’s degree in English from the University of Leeds and a Tier 1 General Insurance (General Advice) certification, which complies with ASIC standards. See full bio

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Nicola has written 246 Finder guides across topics including:

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