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North Carolina Homeowner’s Insurance and Foundation Repair

Posted on December 20, 2023

If you own a home in North Carolina, you may wonder if your homeowner’s insurance policy covers foundation repair. The answer is that it depends. Foundation repair is covered by homeowner’s insurance when a covered peril, such as fire, windstorm, vandalism, or falling objects, causes it, but foundation repair is not covered by homeowner’s insurance when excluding perils, such as earthquakes, floods, poor construction, natural settling, or tree root pressure, cause it.

Covered Perils

According to Policygenius, some of the common perils that are covered by most homeowner’s insurance policies are:

  • Lightning or fire
  • Windstorm
  • Fallen trees
  • Collapse due to the weight of snow, ice, rain, or sleet
  • Water damage from plumbing or HVAC
  • Damage caused by vehicles
  • Explosions
  • Riots or civil disturbances
  • Vandalism
  • Damage caused by aircraft

Filing a Claim

If any of these perils damage your foundation, you can file a claim with your insurance company, and they will pay for the repairs up to your coverage limits, minus your deductible. However, you must provide evidence that the damage was caused by a sudden and accidental event, not by gradual deterioration or negligence.

Excluded Perils

According to U.S. News, some of the common perils that are not covered by most homeowner’s insurance policies are:

  • Natural settling, shrinking, bulging, expansion, and cracking of the foundation
  • General wear and tear, marring, and deterioration
  • Earthquakes and floods
  • Tree root pressure
  • Sinkholes
  • Rodents, insects, and vermin
  • Faulty design or construction

Coverage

If any of these perils damage your foundation, you must pay for the repairs out of your pocket. Homeowner’s insurance considers these perils too risky, predictable, or preventable, so purchase additional coverage or separate policies for some of these perils, such as earthquakes and floods.

How Much Will Insurance Pay for Foundation Repairs?

The amount that your insurance company will pay for foundation repairs depends on several factors, such as:

  • The extent and severity of the damage
  • The cause and origin of the damage
  • The type and age of your foundation
  • The terms and limits of your policy
  • The amount of your deductible

The Numbers

According to Carolina Foundation Solutions, the average foundation repair cost in North Carolina ranges from $2,000 to $10,000. However, the cost can vary widely depending on the specific situation and the repair method. Some of the standard techniques of foundation repair are:

  • Piering involves installing steel piers under the foundation to lift and stabilize it. The cost can range from $1,000 to $3,000 per pier.
  • Slabjacking involves injecting cement and soil under the foundation to raise and level it. The cost can range from $500 to $1,300 per hole.
  • Sealing involves applying a waterproof coating or membrane to the foundation to prevent water damage. The cost can range from $2,000 to $6,000.
  • Replacing consists of removing and replacing the entire foundation with a new one. The cost can range from $20,000 to $100,000.

Foundation Repair

Before you file a claim for foundation repair with your insurance company, you should get a professional inspection and estimate from a reputable foundation contractor, because they can help you determine the cause and extent of the damage, as well as the best method and cost of repair. Also, you should also review your policy carefully and contact your agent or adjuster to discuss your coverage options and limitations. Contact Atlantic Foundation for a free consultation for homeowners in Eastern North Carolina.

Sources

https://www.carolinafoundationsolutions.com/blog/foundation-repair-what-is-and-is-not-covered-by-homeowners-insurance/

https://www.policygenius.com/homeowners-insurance/does-homeowners-insurance-cover-foundation-repair/

https://www.usnews.com/homeowners-insurance/does-home-insurance-cover-house-foundation-repair

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