Insurance
Does homeowners insurance cover foundation repair or a wet basement?
Usually not. Standard homeowners policies exclude settling, earth movement, groundwater seepage and wear, which cause most foundation and basement water problems. They usually do cover sudden, accidental events, and water backing up through a drain or sump is covered only if you have a water backup endorsement.
This page is general information about how homeowners policies are commonly written. It is not advice about your policy. Your own policy wording and your agent decide what is covered.
What is usually excluded
- Settling and earth movement. Cracks and sinking from soil settling, shrinking or expanding.
- Soil pressure. A wall bowing inward from wet soil over time.
- Groundwater and seepage. Water coming through the walls or floor after rain or snowmelt.
- Flood. Surface water from outside the house. This needs separate flood insurance.
- Wear, neglect and poor drainage. Problems that developed over time, including clogged gutters and grading that slopes toward the house.
What is often covered
- Sudden, accidental events. A burst pipe washing out soil under a footing, or damage from a covered event such as a fallen tree.
- Water backup, with an endorsement. Sewer or drain backup and sump pump failure are commonly excluded by default and added back with a "water backup" or "sump overflow" endorsement. Ask your agent whether you have it; it is usually inexpensive.
Before you call your insurer
- Photograph the damage and the water path, with something for scale.
- Write down when it started and what the weather was doing.
- Get the cause identified in writing. Most claims turn on cause, and a free inspection tells you whether you have a sudden event or a long-term one before you file.
- Read the "water damage" and "earth movement" sections of your policy, and ask your agent about endorsements you could add for next time.
Acculevel, which performs inspections for this site, writes up the cause as part of the free inspection. That document is yours whether or not you go ahead with any work.
Questions people ask
Does homeowners insurance cover foundation repair?
Usually not. Standard policies exclude damage from settling, earth movement, groundwater and normal wear, which is what causes most foundation problems. They usually do cover sudden, accidental events, such as a pipe bursting and washing out soil under the foundation. Check your own policy and ask your agent about your specific cause.
Does insurance cover a basement flooding in heavy rain?
Groundwater seeping in through the walls or floor is usually excluded. Flooding from outside the house needs separate flood insurance. Water backing up through a drain or sump is often covered only if you have added a "water backup" endorsement, which many policies offer for a small premium and which is worth asking about.
Does insurance cover a bowing basement wall?
Usually not, because the cause is soil pressure over time, which policies treat as earth movement or wear. A wall damaged by a sudden covered event is the exception.
What should I do before I call my insurer?
Take photos, note when it started and what the weather was doing, and get the cause identified. A written inspection that names the cause tells you whether a claim is even worth making, and avoids a denied claim sitting on your record.
Will making a claim raise my premium?
It can, and a denied claim may still be recorded. That is one reason to know the likely cause before filing. This is general information, not advice about your policy; your agent can tell you how your insurer handles it.
Want the cause in writing?
A free inspection identifies what is happening and puts it on paper, which is the first thing an insurer asks for.
Book a free inspection