Does Homeowners insurance in Texas cover foundation problems?
As a general rule, NO. Most homeowners insurance policies specifically exclude any coverage for concrete slab foundation repair. The insurance companies are well aware of: 1) Why Foundations Fail – Poor Design – most old and new homes in Texas are under designed / under engineered and NOT designed or built to withstand nature’s forces of soil movement, and 2) the “wear and tear” on concrete slab foundations due to the expanding and contracting nature of the clay soils supporting them underneath. In other words, the insurance companies have largely decided NOT to insure home foundations because they have been designed to fail. And in the southern part of the United States, specifically Texas, clay soils comprise many thousands of square miles. In addition, cities such as Houston, Dallas, Austin, San Antonio, Corpus Christi, and others are largely built on top of clay soils.
However, there may be some hope. There are some instances where homeowners insurance may cover foundation repair. Below are the three most common instances where homeowners insurance may provide coverage.
- Bursting pipes* or a poorly designed plumbing system under the concrete slab – which is considered a sudden or unexpected problem
- Earthquake – a sudden and unexpected event that can damage concrete slabs (a premium for earthquake insurance may be required)
- Flooding – flooding is a sudden and unexpected event and may cause damage to concrete slabs (a premium for flooding may be required)
Typically insurance companies will offer endorsements (additional coverage) for various risks. There may not be any available endorsements for foundation damage and repair because it is not generally considered a sudden and unexpected event. However, there may be endorsements for related events, such as damage from water leakage of sewer and drain lines. If a water related event damages your foundation, then your insurance company may pay for foundation repair. Contact the experts at Insurance Services of Texas in Frisco is you have questions.