Fort Worth Foundation Fix is a veteran owned and operated referral and connection service. We help homeowners request a free foundation inspection and get introduced to a vetted local foundation contractor. We are not an insurance company or agent, and we don’t sell, interpret, or adjust insurance policies. This guide is general education based on Texas Department of Insurance (TDI) material. It isn’t legal or insurance advice, and every policy is different, so your own policy and your agent have the final word.
The short answer
Most homeowners policies don’t pay to repair a foundation that moved because of settling, shifting soil, or age. TDI’s page on all-risk and named perils policies says even all-risk policies, which provide the most coverage, “usually don’t pay to remove mold or repair your home’s foundation.” TDI’s home insurance guide also lists “earthquakes or earth movement,” “wear and tear,” and “a continuous water leak” among the risks most policies don’t cover.
Coverage becomes possible when something your policy does cover causes the damage. A common example is water from a plumbing, heating, or air conditioning system. Whether that kind of foundation damage is covered, and for how much, depends on your policy form and any endorsements you have.
Why the cause of the damage matters most
Insurance coverage turns on why the foundation moved, not just the fact that it moved. Here’s how the common causes in the Fort Worth area usually line up:
- Clay soil shrinking and swelling — a frequent cause of foundation movement around DFW. This is generally treated as earth movement or settling, which most policies exclude. The sample HO-3 policy published by the Insurance Information Institute lists “settling, shrinking, bulging or expansion, including resultant cracking, of … foundations” among the losses it doesn’t insure, and its earth movement exclusion includes “earth sinking, rising or shifting.”
- Age, wear and tear, or poor maintenance — TDI lists wear and tear among risks most policies don’t cover.
- Flooding — most home policies don’t cover flood damage. That takes a separate flood policy, according to TDI.
- A sudden plumbing leak — TDI says most policies cover sudden and accidental water damage, such as a burst pipe. Whether the policy also pays for resulting foundation damage depends on its wording, covered below.
- A slow leak that went on for a long time — most policies don’t cover damage from gradual leaks or seepage, according to TDI’s guide to water damage and mold coverage.
Because clay soil movement is behind so many DFW foundation problems, it’s wise to assume a typical repair won’t be covered unless your policy or agent says otherwise. That’s one more reason keeping soil moisture steady matters. Our foundation watering guide covers the basics.
Know which kind of policy you have
Texas policies fall into a few broad types. TDI’s summary of Texas homeowners policies (April 2018) describes them this way:
- HO-A (similar to the national HO 1 form): named perils, basic. It covers only the events listed in the policy.
- HO-A+ (similar to HO 2): named perils, broader. Commonly includes some coverage for sudden and accidental water discharge.
- HO-B (similar to HO 3): all risk for the house, meaning all perils unless excluded, and named perils for your belongings.
- HO-C (similar to HO 5): all risk for both the house and your belongings.
Since 2003, insurers in Texas have been able to file and use their own policy forms, though some still use the forms TDI promulgated. So two policies with similar names can still read differently. If you owe money on your home, TDI notes that your lender will probably require an all-risk policy. Check your policy documents for the form name. TDI describes the declarations page, the first page of your policy, as a summary of your coverages, dollar limits, and deductibles.
Plumbing leaks and foundation coverage
If a plumbing leak caused or contributed to the movement, the exact wording of your policy matters a lot.
The Texas HO-B form. In Commissioner’s Bulletin B-0032-97, TDI stated its position that the Texas standard HO-B policy covers damage to the dwelling, including the foundation, caused by accidental discharge, leakage, or overflow of water from a plumbing, heating, or air conditioning system or household appliance. That bulletin dates from 1997 and applies to the promulgated HO-B form, not to every policy sold today.
ISO-based policies and the foundation endorsement. When TDI approved the national ISO homeowners forms for Texas in 2002 (Commissioner’s Order 02-0741), it noted that the ISO HO 00 03 form doesn’t cover settling, cracking, shrinking, bulging, or expansion of foundations. It also approved a Foundation Coverage-Texas endorsement that, according to the order:
- Covers settling, cracking, shrinking, bulging, or expansion of foundations, floor slabs, or footings caused by seepage or leakage of water or steam from a plumbing, heating, air conditioning, or automatic fire sprinkler system.
- Includes the cost of tearing out and replacing part of the building to repair the system the water escaped from.
- Doesn’t cover the leaking system itself, such as the broken pipe.
- Limits coverage to 15% of your Coverage A (dwelling) amount on the date of loss.
As an example of how that cap works: with $300,000 of dwelling coverage, 15% would be $45,000. The order also required insurers using these ISO forms to offer the foundation endorsement when writing a new policy, subject to their underwriting guidelines, for an additional premium. Insurers that use their own forms may have different endorsements, limits, and rules, so ask your agent exactly what yours provides.
How long the leak lasted can matter. In TDI’s 2018 comparison, some companies excluded leakage that continued for 14 days or more, while others excluded leakage over “weeks, months, or years” or leakage that resulted in deterioration or rot. Some companies allow you to buy coverage for continuous or repeated leakage. Your policy’s wording controls.
Questions to ask your agent
TDI’s home insurance guide notes that coverages vary by company and suggests reading your policy or talking to your agent. These questions can make that conversation faster:
- What policy form do I have (for example HO-A, HO-B, HO-3, or a company-specific form)?
- Does my policy cover foundation damage caused by a plumbing leak? Is that in the base policy or in an endorsement?
- If there’s a foundation endorsement, what is its limit, and does it have its own deductible?
- Does it pay to tear out and replace floors or slab to reach the leak? Does it pay to fix the pipe itself?
- Is there a time limit on leaks, such as 14 days, before a leak counts as continuous or repeated seepage?
- How does my policy treat earth movement and settling?
- What are my deadlines for reporting a claim?
- If I don’t have foundation coverage, can I add it, and what would it cost?
It’s worth asking these questions before you have a problem. If you add coverage later, ask whether it would apply to damage that started before you bought it.
If you think you have a covered claim
These steps are based on TDI’s home insurance guide and its water damage tips:
- Stop the water if you can. Know where your main shut-off valve is.
- Tell your insurance company as soon as possible. Most companies have filing deadlines, and some policies have a one-year deadline. For water damage that was hidden from view, TDI says you usually must report it within days after you first see it.
- Document everything. Take photos or videos before any repairs. Dated photos of cracks, sticking doors, and wet spots help.
- Make only temporary repairs. TDI warns the company might deny a claim if you make permanent repairs before it sees the damage. Keep receipts for materials.
- Be there for the adjuster. TDI says it’s a good idea to have your contractor with you so they can talk with the adjuster about estimates.
Texas law also sets deadlines for the insurer. According to TDI, your company generally must acknowledge your claim within 15 days, accept or deny it within 15 business days after getting all the information it needs (or up to 45 days if it tells you why it needs more time), and pay within five business days after agreeing to pay. If it denies the claim, it must tell you why in writing. Deadlines can be longer after major disasters.
If you disagree with the amount offered, TDI describes options that include talking with the adjuster, asking for an appraisal (for disputes about the amount, not whether something is covered), hiring a licensed public adjuster, filing a complaint with TDI, or going to court. For questions, TDI’s Help Line is 800-252-3439.
One more thing to know: TDI notes that most insurers check the Comprehensive Loss Underwriting Exchange (CLUE), which shows the claims history of people and houses for the last seven years, and that past claims can affect your premium. It’s one more reason to understand your coverage before you file.
Where an inspection fits in
Whether or not insurance is involved, it helps to know what’s actually happening under the house. A foundation inspection can show where the house has moved and how much, and a contractor can explain the repair options. If a leak is suspected, a licensed plumber is the right person to test for it and repair it. If insurance is part of the picture, TDI suggests having your contractor with you when the adjuster visits.
Use the form on this page or our free inspection page, and we’ll connect you with a vetted local foundation contractor. You’re never obligated to proceed with repairs. To understand what drives repair pricing, see our Fort Worth foundation repair cost guide, and for symptoms to watch, see the signs of foundation problems guide.
FAQ
Does homeowners insurance cover foundation repair in Texas?
Usually not when the cause is ordinary settling, soil movement, or wear and tear. The Texas Department of Insurance says all-risk policies usually don’t pay to repair a home’s foundation, and its home insurance guide lists earth movement and wear and tear among risks most policies don’t cover. Coverage may apply when a covered event, such as a sudden plumbing leak, causes the damage, or when your policy includes a foundation endorsement. Policies vary, so read your own policy and ask your agent.
Is foundation damage from a slab leak covered?
It depends on your policy. TDI’s home insurance guide says most policies cover the sudden and accidental release of water but not a continuous water leak. Some Texas policies include or offer a foundation endorsement for damage caused by leaks from plumbing, heating, or air conditioning systems. The Foundation Coverage-Texas endorsement described in TDI Commissioner’s Order 02-0741, for example, limits coverage to 15% of the dwelling coverage amount. Ask your agent whether your policy has foundation coverage and what its limit is.
Does clay soil movement count as a covered cause?
Generally no. Shrinking and swelling clay is a form of earth movement or settling, which most policies exclude. TDI lists earth movement among risks most home policies don’t cover, and the sample HO-3 policy published by the Insurance Information Institute excludes settling, shrinking, bulging, or expansion of foundations, including resulting cracks.
What should I do first if I think I have a foundation claim?
If water is leaking, stop it if you can. Then tell your insurance company as soon as possible, take photos or videos before any repairs, make only temporary repairs, keep receipts, and try to be there when the adjuster inspects. TDI suggests having your contractor with you for that visit. Read your policy for reporting deadlines, and call TDI’s Help Line at 800-252-3439 if you have questions about your rights.