If your house is sinking will homeowners' insurance cover it?

Homeowners Insurance Coverage for Sinking Foundations?

Each major homeowners insurance policy will have its own earth movement language. There is very rarely a situation when earth movement is provided coverage without endorsement. One of the big three insurance carriers literally states plainly..."damage resulting from earth movement of any type is not covered" while other policies allow limited coverage for very specific situations employ the following policy language.... "there is no coverage for loss due to "settling, cracking, bulging, shrinkage or expansion of foundations, walls, floors, ceilings, walks, drives, curbs, fences, retaining walls". For this type of exclusion a loss associated with a broken waterline under your foundation which causes sinking/settling type damage may be covered under some policies, but not all.

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There is one exception where homeowners insurance would provide coverage to this general exclusion. This would be in an earthquake zone where the insured has purchased a specific rider which would provide coverage for only earthquake related damage.

Two alternative scenarios for getting reimbursed for earth movement damage to your home are: In a situation where there was a failure to disclose property conditions in a real estate transaction or in a situation where the earth movement damage was the result of negligence of another party which could be proved in a court of law. Contacting the offenders liability insurance or consultation of an attorney would be prudent in these situations.