Introduction: The Texas Foundation Crisis
After a brutal drought, San Antonio homeowner Carlos noticed a 2-inch-wide crack snaking across his living room floor. His repair quote: $15,000. When he filed an insurance claim, the response was crushing: “Foundation damage is excluded.”
If you’re a Texas homeowner, you need to know:
✔ The 3 rare cases when insurance DOES cover foundation cracks
✔ Why 90% of claims get denied (and how to avoid it)
✔ Cheap ways to prevent foundation damage (save $10K+)
✔ How to fight a denied claim (success stories)
1. The Hard Truth: Most Foundation Cracks Aren’t Covered
Standard Texas home insurance excludes “settling, cracking, and shrinking” (HO-A and HO-B policies). But there are 3 exceptions:
🔹 Exception #1: “Sudden and Accidental” Damage
-
Example: A burst pipe under the slab washes out soil, causing cracks
-
Must prove it happened fast (not over years)
🔹 Exception #2: Covered Disasters
-
Plumbing leaks (if you have “water damage” coverage)
-
Tree roots invading pipes (rare but possible)
-
Vehicle collisions (e.g., a truck crashes into your home)
🔹 Exception #3: “Collapse” Coverage
-
If part of the home collapses due to hidden decay (termites, rot)
-
Requires a separate endorsement on most policies
📌 Key Fact: Over 80% of Texas foundation claims are denied (Texas Department of Insurance).
2. Why Texas Foundations Crack (And How to Prevent It)
🔹 Top Causes of Damage
| Cause | Covered by Insurance? | Prevention Cost |
|---|---|---|
| Drought/soil shrinkage | ❌ No | $500 (soaker hose system) |
| Poor drainage | ❌ No | $1,500 (grading) |
| Plumbing leaks | ✅ Yes (if sudden) | $300 (annual pressure test) |
| Tree roots | ❌ No | $200 (root barrier) |
🔹 5 Cheap Prevention Tips
-
Install soaker hoses ($50) around the perimeter during droughts
-
Grade soil away from the house (slope of 6″ per 10 feet)
-
Water evenly in summer (avoid “cycle and soak” method)
-
Fix plumbing leaks ASAP (even small drips)
-
Remove nearby trees (especially oaks and willows)
📌 Pro Tip: Get a free foundation inspection from Texas-based companies like Olshan Foundation Repair.
3. How to Get Insurance to Pay (When Possible)
🔹 Step 1: Prove a Covered Cause
-
For leaks: Get a plumber’s report + moisture meter readings
-
For vehicle damage: Police report + photos of tire marks
🔹 Step 2: File Immediately
-
Delays give insurers reason to blame “gradual damage”
🔹 Step 3: Push for an Engineer’s Report
-
$500-$1,000 cost (worth it for big claims)
-
Can prove damage was sudden vs. gradual
📌 Success Story: A Houston homeowner got $22,000 covered after proving cracks were caused by a hidden sewer line break.
4. What to Do If Your Claim Is Denied
🔹 Option 1: Appeal with New Evidence
-
45% of appeals succeed with better documentation (Texas DOI)
🔹 Option 2: File a Complaint with TDI
-
Texas Department of Insurance forces insurers to respond
🔹 Option 3: Sue (Last Resort)
-
Small claims court for <$20K in damages
-
Requires clear policy violations
5. Texas Foundation Insurance FAQs
Q: Does “home warranty” cover foundation repairs?
A: No—warranties exclude structural damage.
Q: Are new homes covered for foundation issues?
A: Possibly—builders must warranty foundations for 10 years in Texas.
Q: Can I buy separate foundation insurance?
A: No, but some insurers offer “limited foundation endorsements.”
Q: Does flood insurance help?
A: No—flood policies exclude foundation cracks.
Conclusion: Don’t Wait Until It’s Too Late
Your Action Plan:
-
Inspect annually (look for doors/windows sticking)
-
Fix leaks immediately (the #1 covered cause)
-
Call your insurer BEFORE major repairs
Need Help? A public adjuster can fight denied claims (costs 10-15% of payout).
Leave a Reply