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:

Compare home insurance options with foundation repair

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Product	Is there cover for foundation repair?	Temporary Accommodation	Sum Insured Safeguard	Accidental Damage to Home or Belongings
Promoted 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.	Get a quoteView details Compare	loading Fetching your data...
Promoted Honey Home & Contents Insurance Bonus		10% of home sum insured		Optional	Our verdict: Honey gives you $250 smart sensors to reduce accidents and estimates your rebuild costs for you. Honey was a finalist for the comprehensive category in this year’s Finder Awards.	Get a quoteView details Compare	loading Fetching your data...
Promoted QBE Home & Contents Insurance Green CompanyBonus		20% of buildings sum insured - Up to 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.	Get a quoteView details Compare	loading Fetching your data...
Seniors Top Home & Contents Insurance Bonus		The lesser of: 12 months rent; or 10% of your building sum insured			Our verdict: Get up to 20% off when you buy a combined home and contents policy. This includes a 10% discount for purchasing a combined policy and an additional 10% discount for valid Seniors Card holders. Terms, conditions, underwriting criteria and minimum premiums apply, which may reduce discount. Make sure your rebuild costs are accurate though – Australian Seniors don’t do underinsurance cover.	Get a quoteView details Compare	loading Fetching your data...
Seniors Essential Home & Contents Insurance Bonus		The lesser of: 12 months rent; or 10% of your building sum insured			Our verdict: Good if you want a cheaper option. It covers most of the same things as Australian Seniors top policy (except for accidental damage) but has lower payout limits.	Get a quoteView details Compare	loading Fetching your data...
Huddle Black Home and Contents Insurance		20% of your building sum insured			Our verdict: Save up to 10% on your policy in the first year.	Get a quoteView details Compare	loading Fetching your data...
Huddle Basic Home and Contents Insurance		The lesser of: 12 months rent; or 10% of your building sum insured			Save up to 10% on your policy in the first year.	Get a quoteView details Compare	loading Fetching your data...

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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

Co-written by

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

Nicola's expertise

Nicola has written 245 Finder guides across topics including:

• Personal finance
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