Short answer: Usually not. Standard homeowners policies typically exclude foundation cracks caused by settling, shrinkage, expansion, wear and tear, or earth movement, including earthquakes. A policy may cover foundation damage caused by a sudden covered event, such as a burst pipe or a vehicle hitting the house. Earthquake damage needs a separate earthquake policy.
Why most foundation cracks aren't covered
Homeowners insurance is designed for sudden and accidental losses, not gradual deterioration. Most standard policies, including the common HO-3 form, exclude:
- Settling, cracking, shrinking, bulging or expansion of foundations, walls, floors and slabs
- Earth movement, including earthquake, landslide, mudflow, sinkhole and soil shifting
- Wear and tear, deterioration and maintenance problems
- Faulty construction or design, in many policies
- Gradual water seepage over time
Hairline cracks are common as concrete cures and a house settles. They're generally considered a maintenance issue.
When foundation damage may be covered
Coverage can apply when a covered peril causes the damage. Examples:
- Sudden plumbing discharge: a pipe bursts under a slab and the water damages the foundation. The policy may cover resulting damage, and sometimes the cost to access the pipe ("tear-out"). The pipe repair itself may not be covered. See does homeowners insurance cover burst pipes.
- Vehicle impact: a car crashes into your home.
- Fire or explosion.
- Fallen tree damaging the structure. See fallen tree: who pays.
Policy wording matters. Some policies cover "collapse" in limited circumstances, such as hidden decay or hidden insect damage. Collapse coverage is narrow.
Earthquakes: a separate policy
In California, standard homeowners policies exclude earthquake damage. Insurers that sell residential property insurance must offer earthquake coverage, but buying it is optional. You can buy earthquake coverage from the California Earthquake Authority (CEA) through participating insurers or from private insurers. Earthquake policies often have high percentage deductibles. See is earthquake insurance required in California? and our California earthquake insurance page.
Landslides and soil movement
Earth movement exclusions usually apply to landslides, mudflow and expansive soil. Mudflow may be covered by flood insurance in some situations. See our landslide and mudflow insurance guide.
What to do if you find foundation cracks
- Document the cracks with dated photos and a ruler for scale.
- Monitor changes. Mark crack ends with a pencil and date them.
- Look for water sources: leaks, poor drainage, downspouts or a running water meter with all fixtures off.
- Get a professional opinion from a licensed structural engineer or foundation contractor.
- Call your broker or insurer if a sudden event, like a burst pipe, may be the cause. Report promptly.
- Mitigate further damage. Policies require reasonable steps to prevent more loss.
Warning signs to take seriously
- Cracks wider than a hairline, or that grow
- Stair-step cracks in brick or block
- Doors and windows that stick or won't latch
- Sloping floors
- Gaps between walls and ceilings or floors
Prevention
- Keep gutters and downspouts directing water away from the foundation
- Grade soil to slope away from the house
- Fix plumbing leaks quickly
- Water evenly around the foundation in dry seasons if your soil is expansive
- Keep large trees away from the foundation
- Consider a water leak detector or automatic shutoff
Questions to ask about your policy
- Does my policy cover collapse, and when?
- Is there tear-out coverage for slab leaks?
- Do I have earthquake coverage? What's the deductible?
- Are there exclusions for faulty construction?
Common scenarios
A crack appears in the garage slab after a dry summer. This is typically settling or soil shrinkage, which is excluded. Have it evaluated and monitored.
A water line under the slab breaks, and the floor heaves. The resulting water damage may be covered, and tear-out to reach the pipe may be covered depending on the policy. Long-term seepage damage usually isn't.
A delivery truck backs into the house and cracks the foundation wall. Vehicle damage is typically a covered peril. The driver's auto liability insurer may also be responsible, and your insurer may pursue them.
Cracks appear after an earthquake. Not covered by homeowners insurance. Only an earthquake policy would respond, subject to its deductible.
Selling or buying a home with foundation issues
California sellers generally must disclose known material defects. Buyers should get an inspection, and a structural engineer if there are signs of movement. Insurers may ask about known foundation problems on the application. Answer accurately.
Contact Alishahi Insurance or call (877) 711-4545 to review your homeowners insurance. The California Department of Insurance residential guide explains common coverages.
Frequently asked questions
Does homeowners insurance cover foundation cracks?
Usually not when cracks come from settling, shrinkage, wear and tear or earth movement. It may cover foundation damage caused by a sudden covered event like a burst pipe.
Does homeowners insurance cover earthquake damage to my foundation?
No. Standard homeowners policies exclude earthquakes. You need a separate earthquake policy.
Will insurance pay for a slab leak under my foundation?
It may cover resulting water damage and sometimes tear-out costs, but usually not the pipe repair itself. Check your policy.
Are hairline foundation cracks normal?
Small hairline cracks are common as concrete cures and homes settle. Have widening or growing cracks checked by a professional.
What should I do if I find foundation cracks?
Document them, monitor changes, look for water sources, get a professional opinion and contact your insurer if a sudden event may be the cause.
Alishahi Insurance · 439 N Canon Dr, Penthouse, Beverly Hills, CA 90210 · (877) 711-4545 · CA License #4348151. General information only. This isn't legal, tax or financial advice or a coverage determination. Coverage depends on policy language and underwriting, and rules vary by state.