Insurance & Warranty guides

What homeowners insurance actually covers

The short answer: usually not the repair you need. Standard US homeowners policies exclude earth movement — settlement, subsidence, sinkhole (unless endorsed), and poor drainage — and treat foundation cracks as maintenance. What they do cover is a sudden event that damages the foundation, such as a burst pipe, a vehicle impact or a fire.

Situation	Typically covered?	Why
Long-term settlement	No	Earth movement exclusion
Poor drainage or grading	No	Maintenance exclusion
Burst pipe flooding the slab	Often yes	Sudden and accidental discharge
Vehicle hitting the house	Often yes	Sudden accidental damage
Sinkhole collapse	Only with an endorsement	Excluded in standard forms
Earthquake	Only with a separate policy	Separate peril, separate cover
Construction defect	Usually no	Excluded; a builder warranty question

Read the exclusions page before the declarations page. The words that decide foundation claims are "earth movement", "settling", "cracking", "faulty workmanship" and "gradual deterioration" — if two of those appear in the exclusions, the policy is not going to pay for a pier system.

What to document anyway

• Photographs of every crack with a ruler or coin for scale, dated.
• A crack monitor reading log if movement is progressive.
• The engineer's report, even if you pay for it yourself.
• Contractor quotes showing method and pier count.
• Any plumbing leak report — the most common covered trigger.
• Grading and downspout records, which insurers ask for first.

Warranties: the part that transfers

Most pier systems carry a lifetime warranty that transfers to the next owner, sometimes for a fee and sometimes only if the transfer is registered within a set window. That matters at resale: a documented, transferable warranty is worth more than a verbal promise.

Ask for the warranty document before signing, not after. Check four things: what is covered (piers only, or the whole repair), what voids it (landscaping changes, plumbing leaks, adding a structure), whether it transfers, and who honours it if the contractor closes.

When to involve the insurer

File a claim when there is a sudden event with a date: a pipe burst, a water heater failure, a vehicle. Do not file for gradual settlement — a denied claim still goes on the property's claim history in many states and can affect renewal.

If the cause is ambiguous, an independent engineer's letter is the document that moves a claim from "earth movement" to "sudden discharge". The insurance coverage guide walks through the wording, and the cost hub shows what you are likely to pay yourself if the claim is denied.

Does homeowners insurance cover foundation cracks?

Generally no, unless the crack resulted from a covered sudden event. Cracks from settling or drainage are excluded as earth movement or maintenance.

Is a foundation warranty worth it?

Yes when it is a written, transferable warranty from a contractor with a track record. It is worth little if it is a one-year workmanship promise attached to a company that may not exist next year.

Should I disclose foundation repair when selling?

In most US states, yes — a known structural repair is a material fact. A completed repair with an engineer's letter and a transferable warranty is a selling point, not a liability.

The claim conversation, in order

If you decide to file, the sequence matters more than the wording. Report the loss with a date and a cause, attach the engineer's letter and photographs, and keep a record of every call and reference number. Adjusters work from the cause: "sudden discharge from a failed supply line" is a different claim from "the house has settled over ten years".

Expect an independent adjuster's inspection and, in disputed cases, a second engineer. Do not authorise repairs before the adjuster has seen the damage — an invoice dated before the inspection is the fastest way to have a claim questioned. If the denial cites earth movement, the engineer's letter is the document that either confirms it or challenges it.