How Much Does Insurance Cover Foundation Repairs? Homeowner's Guide

Understanding Your Insurance Coverage and How to Protect Your Foundation

1) What Insurance Typically Covers

Most home insurance policies in Ottawa will cover foundation damage caused by specific “sudden and accidental” events. These typically include:

Burst pipes or sudden plumbing failures that damage your foundation
Fire-related foundation damage
Vehicle impacts (e.g., a car hitting your house)
Explosion damage
Some natural disasters (confirm specifics in your policy)

Renco Tip: The key word is “sudden.” Document any water damage immediately with dated photos and videos. Insurance companies require clear evidence that the damage resulted from a specific event, not gradual deterioration.

2) What Insurance Usually Doesn’t Cover

Unfortunately, many common foundation issues aren’t covered by standard insurance policies. These include:

Normal house settling
Wear and tear over time
Poor maintenance-related issues
Pre-existing foundation problems
Gradual water seepage
Tree root damage
Soil movement or shifting

Renco Tip: Keep a detailed maintenance log and annual photos of your foundation. This documentation can be critical when dealing with insurance claims, helping establish the condition of your home over time.

3) Steps for a Successful Foundation Claim

Discovering foundation damage can be overwhelming, but you can follow the steps below to speed up the coverage process and improve your chances of a successful claim. Acting quickly and staying organized will help you avoid unnecessary delays and out-of-pocket expenses.

Document everything immediately (photos, videos, dates).
Contact your insurance provider within 24-48 hours.
Get a professional foundation assessment.
Obtain detailed repair quotes.
Understand your policy deductible before filing a claim.
Keep all correspondence and paperwork.

Renco Tip: Consulting a professional foundation expert before filing a claim can save you time and money. With deductibles often starting at $1,000, knowing the repair costs in advance can help you decide if filing is the right choice.

4) Essential Questions for Your Insurance Provider

When reviewing your policy or discussing foundation repair claims, ask your insurance provider these specific questions:

What foundation-related events are specifically included?
Are there any special endorsements I should add for better foundation coverage?
How does the claims process work for foundation issues?
What documentation is required for a foundation claim?
Will a foundation claim affect my future premiums?
Is there a time limit for filing foundation damage claims?

Renco Tip: Request a copy of your policy’s “earth movement” and “water damage” endorsements. (Good example on CAA website here). These sections often contain critical details about what foundation issues are covered and excluded.