No, insurance does not usually cover damage from house settling. House settling is a natural and gradual process that occurs when the soil beneath the foundation of a house shifts and compacts over time. This can cause cracks, gaps, and unevenness in the walls, floors, and ceilings of the house.
However, most homeowners insurance policies consider house settling to be a part of normal wear and tear and do not cover the costs of repairing or preventing it.
In this article, we will explain what house settling is, how it affects insurance coverage, and what you can do to protect your home from it.
What is House Settling and How Does it Affect Insurance Coverage?
Definition of House Settling
House settling is the movement of the foundation of a house due to changes in the soil underneath it. It is a common phenomenon that affects most houses to some degree, especially in the first few years after construction. House settling can be caused by various factors, such as:
- Soil type: Different types of soil have different levels of moisture, density, and stability. Clay, silt, and organic soils tend to expand and contract more than sand and gravel soils, which can cause more settling.
- Soil compaction: The soil beneath the foundation of a house may not be fully compacted when the house is built, and may settle over time due to the weight of the house and other factors, such as water drainage, temperature changes, and vibrations.
- Soil erosion: The soil around the foundation of a house may erode due to water runoff, flooding, landslides, or other natural events, which can create gaps and voids under the foundation and cause it to sink or shift.
Types of House Settling
House settling can be classified into two types: uniform and differential. Uniform settling occurs when the entire foundation of a house settles evenly and proportionally. This type of settling is usually harmless and does not cause significant damage to the house. Differential settling occurs when different parts of the foundation of a house settle at different rates or directions. This type of settling can cause structural problems and cosmetic damage to the house, such as:
- Cracks in the walls, floors, ceilings, windows, and doors
- Gaps between the walls and the floors or ceilings
- Sloping or uneven floors or ceilings
- Doors or windows that stick or do not close properly
- Separation of the chimney, porch, or garage from the house
- Damage to the plumbing, electrical, or HVAC systems
Effects on Insurance Coverage
Insurance coverage for house settling damage depends on the cause and extent of the damage, as well as the terms and conditions of the policy. Generally speaking, most homeowners insurance policies do not cover damage from house settling, unless it is caused by a covered peril, such as fire, explosion, vandalism, or earthquake. However, even in these cases, the coverage may be limited or subject to a deductible or a waiting period. Moreover, some homeowners insurance policies may exclude or restrict coverage for certain types of damage from house settling, such as:
- Cracks in the foundation, walls, floors, or ceilings
- Damage from earth movement, such as subsidence, sinkholes, or landslides
- Damage from water seepage, leakage, or pressure
- Damage from faulty construction, design, or materials
- Damage from neglect, lack of maintenance, or deterioration
Will Homeowners Insurance Cover House Settling Damage?
Factors that Determine Coverage
The answer to this question depends on several factors, such as:
- The cause of the house settling: If the house settling is caused by a covered peril, such as fire, explosion, vandalism, or earthquake, the insurance may cover the damage, subject to the policy limits and exclusions. If the house settling is caused by natural or gradual factors, such as soil type, compaction, or erosion, the insurance may not cover the damage, unless the policy has a specific endorsement or rider for it.
- The extent of the damage: If the house settling causes minor or cosmetic damage, such as small cracks or gaps, the insurance may not cover the damage, as it may fall below the deductible or be considered normal wear and tear. If the house settling causes major or structural damage, such as large cracks or separations, the insurance may cover the damage, if it meets the policy criteria and conditions.
- The type of policy: Different types of homeowners insurance policies offer different levels of coverage for house settling damage. For example, a basic policy (HO-1) may only cover damage from 10 named perils, while a broad policy (HO-2) may cover damage from 16 named perils, and a special policy (HO-3) may cover damage from all perils except those specifically excluded. Additionally, some policies may offer optional or additional coverage for house settling damage, such as an earthquake endorsement, a sinkhole endorsement, or a guaranteed replacement cost coverage.
Exclusions and Limitations
Even if the house settling damage is covered by the insurance, there may be some exclusions and limitations that apply, such as:
- Deductible: This is the amount of money that the policyholder has to pay out of pocket before the insurance pays for the claim. The deductible may vary depending on the type and amount of the claim, and the policy terms and conditions.
- Waiting period: This is the amount of time that the policyholder has to wait before the insurance pays for the claim. The waiting period may apply for certain types of claims, such as earthquake or flood damage, and may range from a few days to a few months, depending on the policy terms and conditions.
- Policy limits: This is the maximum amount of money that the insurance will pay for the claim. The policy limits may vary depending on the type and extent of the damage, and the policy terms and conditions. The policy limits may be expressed as a percentage of the dwelling coverage, a fixed dollar amount, or a sub limit for specific types of damage.
- Exclusions: These are the situations or circumstances that the insurance will not cover for the claim. The exclusions may vary depending on the type and cause of the damage, and the policy terms and conditions. Some common exclusions for house settling damage are earth movement, water damage, faulty construction, and neglect.
