Foundation repair is costly. It’s not a home repair that can be done using the DIY approach with the materials you can purchase at a local hardware store. The repair involves the foundation itself, which is crucial depending on the type you have constructed at home. Thank God for insurance. However, the insurance policies cover specific incidents like “covered perils”.
If the foundation is damaged in different circumstances, it can be covered in different policies. If the foundation was cracked because of an earthquake, you might be covered in the earthquake policy which covers any damages regarding such devastating incident. But if the foundation is damaged because of wear and tear, it might not be covered even in a specialized insurance policy. Read this article to know if foundation repair Mesquite TX is covered in your insurance policy.
1. Wear and Tear vs. Sudden Incident
Insurance don’t cover regular maintenance for wear and tear if your foundation. For example, if you have a leaking pipe under your foundation which has been happening for a year, the insurance company will refer to this as a long-term maintenance issue. They will look for signs and symptoms that indicate that the problem has been going on for a while, like mold and mildew growth.
However, if a sudden incident happened, it might be covered in your insurance policy. For example, if the pipe suddenly burst and the foundation got damaged, it might be covered depending on the coverage. Check the policy again, review what’s written there and look for perils that cover the extent of the incident. Remember though, that backup drain or sewer is not covered.
2. Earthquake Policies
There are homeowner insurance policies that don’t cover earthquakes. For example, in California, the earthquake insurance is either a separate insurance policy or a rider in your other policies. The CEA or California Earthquake Policy covers the damages less the deductible. In this company, their deductible is 5% of the cost of the home’s rebuilding amount. So if the damage costs $50,000 then you will get an insurance of $40,000 to fix the foundation.
3. Flood Insurance
There are also insurance provide company like FEMA (Federal Emergency Management Agency) that covers losses or damages caused by floods. The inclusions are the foundation walls, anchors, the foundation, stairs and even the basement. This insurance policy doesn’t cover any damage because of “earth movement”. So if your house was affected with a mudslide or a flash flood and the foundation was swept out from the ground, you are not covered.
4. Talk to Your Insurance Agent
Assess your area first, and then write down everything that might be the risks for your structure. Discuss these perils with your insurance agent so you will know the right policy for you. You can look for specialty foundation policies if you think that other insurance policies won’t cover the damage on your foundation. There are special policies that cover shifts, cracks and other damages to the foundation because of the upheaval or settlement.