Insurance Claims for Foundation Damage: How 2024 Policy Changes Are Reshaping Coverage for Homeowners

Foundation damage can be one of the most expensive repairs a homeowner faces, with costs typically ranging from $2,000 to $7,500 for foundation repairs. While homeowners insurance may provide coverage for certain types of foundation damage, the landscape of insurance policies has undergone significant changes in 2024, affecting how and when these claims are covered.

Understanding Foundation Coverage in 2024

The fundamental principle of foundation coverage remains consistent: policies generally cover foundation damage only if the damage is sudden and accidental. However, insurance companies have been making adjustments to home insurance policies to help spread out their exposure and share the cost of more common losses and claims.

Your foundation is protected under your policy’s dwelling coverage, typically providing coverage up to your policy’s dwelling coverage limits, which is typically anywhere from $100,000 to $500,000. This coverage applies when foundation damage results from covered perils such as severe windstorms, fire, or fallen trees.

Major Policy Changes Affecting Foundation Claims in 2024

One of the most significant changes impacting homeowners in 2024 is the increase in policy deductibles. There is an increasing trend of separate deductibles for wind and hail damage, with insurers now specifying separate, typically higher deductibles for claims related to wind or hail damage. For example, if your standard deductible is $1,000, your wind/hail deductible might be $2,500.

Additionally, several states have implemented specific insurance reforms. Changes became effective on May 2, 2024, including new requirements for insurance companies to provide policy and claims data to the Office of Insurance Regulation on a monthly basis.

What’s Covered vs. What’s Not

Foundation damage coverage depends heavily on the cause. Home insurance typically covers foundation damage caused by covered perils, which are typically sudden and accidental events such as severe weather, tornadoes, strong winds, hailstorms, or lightning strikes.

However, significant exclusions remain in place. Generally, foundation cracks or settling aren’t covered by your homeowners policy, and foundation damage caused by shifting or settling earth or sagging floors caused by rotting floor joists are typically not covered. Additionally, damage due to earthquakes, flooding, concrete settling, and normal wear and tear usually isn’t covered.

Common exclusions that homeowners should be aware of include:

• Damages that result from normal wear and tear or lack of maintenance, including foundation issues that arise due to inadequate maintenance or neglect
• Damage that occurs as a result of poor construction or defective materials used in building the home
• Foundation damage from pests or vermin, such as termites or rats
• Tree roots growing beneath your foundation, as insurance companies expect you to monitor the trees on your property and remove them if they threaten your home

Filing a Successful Foundation Damage Claim

If you discover foundation damage that you believe is covered, acting quickly is essential. The sooner you reach out to your insurance company, the sooner you’ll begin the claims process and can find out if insurance will cover the damage.

The claims process typically involves several key steps:

• Take photos or videos of the affected areas of your home
• Your insurance company will likely send a claims adjuster to your home to assess the damage and confirm details about your claim
• Once the inspection is complete and your claim is confirmed, an independent contractor will need to survey the damage and give an estimate of repair costs

When dealing with cracks in foundation, it’s crucial to have them professionally assessed to determine if they resulted from a covered peril or from normal settling and wear.

The Role of Professional Foundation Repair Services

For Long Island homeowners, companies like Diamond Masonry & Waterproofing have been providing expert foundation repair services since 2000. Diamond Basement Waterproofing, a division of Diamond Masonry & Waterproofing, has been servicing Long Island since 2000 and has helped hundreds of customers solve their basement waterproofing needs.

As a family-owned business that operates efficiently without a lot of overhead like many of the larger companies servicing the Long Island market, they are able to deliver more affordable solutions to customers. For over 25 years, Diamond Masonry & Waterproofing has been the trusted name for masonry and waterproofing services, helping homeowners protect their homes with reliable solutions for wet basements and foundation cracks to water damage.

Additional Coverage Considerations

Given the limitations of standard homeowners insurance, many experts recommend considering additional coverage. While homeowners insurance won’t cover foundation damage caused by an earthquake or flood, depending on your location, you may be able to purchase a separate flood insurance policy or earthquake policy.

Foundation damage due to water backing up from your septic tank, drains, sewer or sump pump usually isn’t covered by home insurance, but you can typically add water backup insurance as an endorsement to your homeowners policy.

Looking Ahead: Prevention and Preparation

With insurance coverage becoming more restrictive and deductibles increasing, prevention becomes even more critical. Your home’s foundation moves as the ground expands or contracts, so being able to control water flow and soil moisture on your property is the best measure you can take to prevent foundation damage.

Key preventive measures include:

• Clean and maintain your gutters and downspouts, ensuring that downspouts direct water several feet away from the home’s foundation
• Use proper drainage to prevent water from accumulating near your foundation, which may mean grading the surrounding soil to slant away from your home or installing drains
• Investing in annual or bi-annual inspections to catch issues before they become catastrophic events

As we move through 2024, homeowners must stay informed about their policy changes and understand both the coverage and limitations of their foundation damage protection. With these changes, it’s very important to review your current home insurance policy, understand how your foundation is covered and what your deductible amounts are. Working with experienced professionals and maintaining proper preventive measures will be more important than ever in protecting your home’s foundation and your financial investment.