Foundation Repair: Is it Covered by Insurance in Indiana?
It would be nice if homeowners could purchase separate foundation repair insurance, to cover the cost of needed fixes. However, homeowner’s insurance isn’t as simple or comprehensive as people often assume! In turn, you might end up footing more of the cost of foundation fixes than you might expect. Visit our website to learn more about foundation repair coverage.
While your agent is the best source of information when it comes to your policy, you might note some general details about homeowner’s insurance here. You can then better know what to expect when you call your policy provider about foundation repair costs!
Is Foundation Repair in Indiana Covered by Insurance?
First note that homeowner’s insurance doesn’t cover repairs due to age and everyday wear and tear. This is true for foundations and just about every other material and surface in your home! Standard repairs are considered part of the cost of owning a home and your insurance policy isn’t designed to cover those costs.
Low-risk Covered Perils
On the other hand, your insurance policy will usually cover the cost of repairs for what are called covered perils. These typically include:
- Civil disturbances, meaning damage caused by riots, protests, and the like.
- Collapse weight caused by ice, snow, or sleet. Homeowners often forget that snow and ice are so heavy that they can affect a structure’s foundation!
- Damage caused by vehicles. This includes a car skidding out of control and hitting your property, for example.
- Explosions, such as from a faulty gas line or gas water heater.
- Fire, including a house fire or exterior brush fire.
- Lightning strikes and resultant fire.
- Vandalism; however, this wouldn’t include a property owner purposely damaging their own structure!
- Windstorms, including a structure collapsing on the foundation due to winds and heavy storms.
Foundation Damage not Covered by Insurance
Not all foundation damage is covered by insurance, as said. Along with everyday wear and tear, there are high-risk perils not usually covered by your insurance policy, including:
- Flood, unless a property owner has separate flood insurance
- Tree roots wrapping around foundation concrete
- Faulty repairs or construction
Note, too, that insurance rarely pays for damage or repairs needed due to a property owner’s poor-quality work or neglect! For instance, if you’ve neglected needed water heater repairs and this results in a flood or explosion, your insurance carrier might try to deny your claim.
Do Insurance Companies Cover Foundation Leaks?
Your insurance company covers foundation leaks if they’re caused by any of the covered perils listed above. For example, if someone vandalizes basement windows during an attempted break-in, your insurance company will probably cover the cost of repairing resultant leaks.
However, as said, your insurance company doesn’t cover repair costs for everyday wear and tear, age, and the like. It also won’t cover the cost of repairs needed for poor-quality installation and fixes, or due to a property owner’s neglect.
What Is Not Covered By Homeowner’s Insurance?
Homeowner’s insurance covers your house and structures on your property including garages and sheds. However, it doesn’t reimburse you for every expense related to the care and upkeep of those structures. As said, your insurance policy won’t repay you the cost of everyday maintenance and repairs. For instance, if your structure’s roof has aged past its expected lifespan, it’s unlikely you can claim the cost of a new roof.
Homeowners especially should also note that your insurance provider might try to deny a claim resulting from DIY or poor-quality repairs. As an example, suppose you might make plumbing repairs to your home but block vents or fail to seal connections. In turn, your insurance carrier probably won’t reimburse you for costs associated with resultant leaks and other damage.
Additionally, your insurance provider won’t reimburse you for repairs due to anything not listed as a “covered peril” on your policy. In other words, just because damage isn’t your fault or due to age doesn’t mean you should automatically expect reimbursement!
As said, your policy doesn’t cover damage caused by floods unless you have separate flood insurance. Most policies also don’t cover damage due to earthquakes, tree roots and other structures on your property, and the like. If you have specific questions about your policy and what it does and does not cover, talk to your agent about foundation repair insurance in Indiana!
Should You Buy a Home With Foundation Repair Issues?
Now that you know what’s covered by homeowner’s insurance, you might wonder if you should buy an Indiana home with foundation repair issues. Note that your real estate agent or an attorney can offer expert advice about any home in particular. In the meantime, note some additional information about buying a home with foundation repair issues so you know what to expect.
Homes with Foundation Repairs
Foundation repair methods such as underpinning or bowing basement wall repair often last for decades if not indefinitely. In turn, buying a home that’s undergone these repairs doesn’t necessarily mean you’ll need to repeat those repairs down the road! Additionally, leak repair and waterproofing can also protect a foundation from future damage!
Homes with Damaged Foundations
As with any other issue affecting a property, foundation damage doesn’t necessarily make a home a poor buying decision. The important factor to consider is repair costs versus other advantages and disadvantages to the home itself.
As an example, a home might need around $4000 of foundation leak repair. If the asking price is low enough to compensate for those costs, the property might be a good purchase for you. Also, you might be willing to invest in foundation repair costs if the house offers other features you need, such as close proximity to work, a beautiful yard, and so on.
Lastly, note if there are any maintenance issues and costs you’ll also need to face, to prevent future foundation damage. This might include property soil grading, waterproofing, sump pump installation, and the like. Since these costs might run into the thousands of dollars, it’s vital that you consider them when deciding on a home purchase. Since these aren’t usually covered in an Indiana foundation repair insurance policy, you’ll need to ensure you can afford this work over the years!