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:

Compare home insurance options with foundation repair

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Product AUFHO	Is there cover for foundation repair?	Temporary Accommodation	Sum Insured Safeguard	Accidental Damage to Home or Belongings	Fire, Storm & Theft Damage
Youi Building and Contents Insurance Best Rated Brand			12% of sum insured - up to 12 months		Optional	Our verdict: Finder’s 2022 Insurer of the Year for Customer Satisfaction and our Top Pick for Fire Damage cover. It’s good if you want a tailored quote over the phone.	Compare	loading Fetching your data...
Budget Direct Home & Contents Insurance Best Rated BrandBonusFinder Award Finalist			10% of sum insured - up to 12 months	Optional	Optional	Our verdict: The most popular insurer on Finder, Budget Direct prioritises low-cost cover and gives you up to 30% off your first year's premium for new combined Home & Contents policies purchased online.	Compare	loading Fetching your data...
Bendigo Bank Gold Home & Contents Insurance			10% of sum insured - up to 12 months			Our verdict: A good option if you want a well regarded brand. All come with automatic flood cover and let you pay monthly or fortnightly at no extra cost.	Compare	loading Fetching your data...
QBE Home & Contents Insurance Green CompanyBonus			20% of buildings sum insured - 24 months		Optional	Our verdict: Finder's Top Pick for Floods plus cover for other common claims such as fire and theft). Its discount is better than most – 20% off your first year with a combined policy.	Compare	loading Fetching your data...
Qantas Home and Contents Insurance BonusFinder Award Finalist			10% of sum insured - up to 12 months	Optional	Optional	Our verdict: Earn up to 40K Qantas Points for joining by 29 January. Plus save 30% on your 1st year’s premium for purchasing a combined home and contents policy online. T&Cs apply.	Compare	loading Fetching your data...
ALDI Home & Contents Insurance			10% of home sum insured		Optional	Compare	loading Fetching your data...
Huddle Comprehensive Home and Contents Insurance			The lesser of: 12 months rent; or 10% of your building sum insured			Our verdict: Save up to 10% on your policy in the first year.	Compare	loading Fetching your data...

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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.

Written by

Nicola Middlemiss

Senior writer

Nicola Middlemiss is a contributing writer at Finder, with a special interest in personal finance and insurance. Formerly a business and finance journalist, Nicola has written thousands of articles helping Australians better understand insurance and grow their personal wealth. She has contributed to a wide range of publications, including Domain, the Educator, Financy, Fundraising and Philanthropy, Insurance Business, MoneyMag, Mortgage Professional, Yahoo Finance, Your Investment Property, and Wealth Professional. Nicola has a Tier 1 General Insurance (General Advice) certification and a Bachelor's degree from the University of Leeds. See full bio

Nicola's expertise

Nicola has written 239 Finder guides across topics including:

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Co-written by

Gary Ross Hunter

Editor, Insurance

Gary Ross Hunter was an editor at Finder, specialising in insurance. He’s been writing about life, travel, home, car, pet and health insurance for over 6 years and regularly appears as an insurance expert in publications including The Sydney Morning Herald, The Guardian and news.com.au. Gary holds a Kaplan Tier 2 General Advice General Insurance certification which meets the requirements of ASIC Regulatory Guide 146 (RG146). See full bio

Gary Ross's expertise

Gary Ross has written 648 Finder guides across topics including:

• Health, home, life, car, pet and travel insurance
• Managing the cost of living