Does homeowners insurance cover foundation settling?

It depends on what caused the damage. The most likely causes of foundation damage, such as soil expansion, the small cracks that come from settling and contraction or poor construction, are typically excluded from most insurance policies.


Does homeowners insurance cover sinkholes?

Yes, if all four elements of the following are present:

1. There has to be an abrupt collapse of the ground cover.
2. There has to be a depression in the ground that is clearly visible by the naked eye.
3. There must be structural damage to the building, including the foundation. Just because there is a hole in your lawn, does not cover it.
4. The insured structure has to be condemned by the appropriate authorities in that community.