The foundation of your home supports its structure. If it is damaged, it can compromise the rest of your home. Most homeowners’ policies will cover damage to your foundation if it is caused by one of the perils named in your policy. It must also start above the slab. If you notice a crack or areas of moisture starting to form in your foundation, you should immediately check your policy to find out if the damage is covered. Your agent can explain the different perils and which ones your policy includes.

Open Perils

An HO-3 policy is one of the more basic homeowners’ policies. It covers numerous perils that are normally out of your control. They include:

• Damage from vehicles/aircraft
• Vandalism
• Fire/lightning
• Civil disturbance/riots
• Explosions
• Water damage from HVAC, plumbing, overflow
• Falling objects

Fire can cause extensive damage to your foundation. It is one of the primary perils that is normally covered by your homeowners’ policy. If you don’t know what the open perils of your policy are, talk to your insurance and have it explained to you.

How It Works

Depending on your coverage type, you will be reimbursed for the actual cash value or the replacement cost to repair the damages. Actual cash value includes any depreciation that takes away from the cost. Replacement coverage, on the other hand, pays for the cost of making all of the necessary repairs. With inflation costs, the money it takes to make the necessary repairs may be much higher than the actual cash value. Insuring your home with replacement coverage ensures that you have enough to make all necessary repairs.

When Is Foundation Damage Not Covered?

There are instances when the damage to your foundation won’t be covered. Poor maintenance, ground collapse, water damage, or damage caused by tree roots are perils that are not covered by basic homeowners’ insurance. These damages are thought to be preventable. Check your foundation once or twice a year to ensure it remains in good condition.

Understanding what perils are covered by your homeowners’ policy is important. Contact the agents at Steve Wilk Insurance Agency to learn more about your policy. Once you know what perils are covered, you can take precautions to prevent further damage to your foundation. Don’t wait until you experience damage to have your policy reviewed. Call today to schedule an appointment.