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 AUFHO	Is there cover for foundation repair?	Temporary Accommodation	Sum Insured Safeguard	Accidental Damage to Home or Belongings	Fire, Storm & Theft Damage
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...
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.	Get a quoteView details 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.	Get a quoteView details 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.	Get a quoteView details Compare	loading Fetching your data...
ALDI Home & Contents Insurance		10% of home sum insured		Optional		Get a quoteView details Compare	loading Fetching your data...
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...
Kogan Home & Contents Insurance Bonus		20% of buildings sum insured - Up to 24 months		Optional		Our verdict: Good comprehensive cover (issued by QBE). Also, get $5 Kogan.com credit when you purchase a new combined Home & Contents insurance policy online. T&Cs apply.	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

Insurance Content Writer

Cameron is the local insurance scholar at Finder. With a diverse background writing in independent education, web-3, and finance, his mission is to build helpful content and that speaks to readers in language they understand. See full bio

Co-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

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Nicola has written 241 Finder guides across topics including:

• Personal finance
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