You notice cracks in your foundation after a careful inspection. You would like to get them repaired, but you aren’t sure if this will be covered by your home insurance.
Here is some information on the topic.
Home insurance: different for everyone
Home insurance is essential when you own a house or a building. Knowing that it will protect your property and real estate investments in the event of a claim can give you peace of mind. Since it is drawn up based on your situation and your home, each insurance policy is different, so you need to fully understand the terms and conditions of the contract you entered into.
Generally, an insurer will offer two possible policy forms: “Named perils” covers only the perils specified, and “Comprehensive” covers all perils except certain exclusions.
A crack as a consequence
Floor cracks can be a symptom of a serious home stability problem and lead to unfortunate situations. Knowing the cause of the crack is crucial for determining the right repair methods and whether repairs are covered by your insurance.
Soil subsidence and changes in its composition can deteriorate your foundations, but the majority of home insurance policies will not cover this type of damage. Some cities in Quebec, such as Montreal, offer financial assistance to residents in at-risk areas to cover part of the costs.
Natural disasters can cause cracks and, contrary to popular belief, the damages caused by these disasters (tornado, hail or wind storm) are covered by insurance. Earthquake related damages can also be added to your insurance coverage. On the other hand, flood related damages due to river overflow are rarely covered.
Be vigilant and contact your broker to ensure that you are adequately protected.
A crack leads to water infiltration: is this covered?
Foundation cracks increase risks of water infiltration and the resulting damages are the main claim. While most insurance policies cover damages caused by a broken pipe or faucet, they rarely do for water from outside the home.
It is possible to add a specific protection to your insurance policy to cover damages caused by water leaks from a foundation in poor condition.
There are different types of home insurance policies, so it is important to choose one that fits your needs. Your insurer will be able to answer your doubts or questions and offer you the coverage you need, while helping you avoid unfortunate situations.
A cracked foundation should never be taken lightly, whether it causes aesthetic or structural issues. The faster repairs are done, the less expensive they will be, especially considering that damages caused by a neglected crack will unlikely be covered by your insurance.
Do not hesitate to contact our team of specialists, who will inspect your cracks and identify the causes quickly.