My House Is Sinking & the Walls Are Cracking: Is This Covered by Homeowner's Insurance?

Owning a home is likely to be one of the biggest financial commitments you'll make in your lifetime. In addition to a mortgage loan, a common expense is a homeowners insurance policy. Typically, policies are designed to protect you and your home against various types of loss, including fire, burglary and personal injury liability. Unfortunately, there are just some issues with homes that homeowners insurance doesn't cover, including a home sinking or its foundation cracking.

Homeowners insurance policies in states such as California cover dwellings against loss such as fire. However, most policies exclude coverage for issues such as foundation cracking or your house sinking or subsiding. Generally, the only instances when homeowners insurance covers a home's foundation is if it was damaged by other issues such as broken plumbing. For example, your homeowners insurance might cover your property's foundation if water leakage from broken plumbing caused cracking and sinking.

If you're having problems with your home's foundation, such as if it's cracking or if your home is sinking or subsiding, review your homeowners insurance policy. Some homeowners carry additional earthquake or flood coverage in their policies, which could cover your home's foundation if it's damaged under these circumstances. Although, unless they're required to, relatively few homeowners purchase earthquake-specific or flood-specific homeowners insurance.

If your home's foundation suffers from cracks wider than 1/4 inch or displays stair-step cracks, it may need repair, commonly through injected epoxy resin. However, injecting epoxy or otherwise repairing cracks in a home's foundation only addresses the cracks themselves, not the underlying issues. In most cases, cracks in a home's foundation are caused by excess water in the surrounding soil. If the soil surrounding your home's foundation suffers from excessive water levels, it may need to be professionally drained or treated to reduce wetness.

In many cases, drought-like conditions cause the supporting soil around a home to dry out, with sinking or subsidence a possible end result. A home that's sinking presents a potentially serious problem over time for a homeowner. If your home is sinking or subsiding, stabilizing and supporting its foundation with concrete or steel piers can halt its movement. The cost of home foundation repair work, including fixing cracks, draining water in surrounding soil and installing piers varies across the country.