With the approval of the “foundation cover”, you can expect to have coverage to repair or replace your foundation in the event that a pipe breaks or has a water leak from underneath the house. After consulting with a professional, if you've determined that you're covered for the cause of the damage, you can file a claim as you would for any other type of damage. Otherwise, you may need separate policies to cover damage to foundations caused by earthquakes or floods, since standard housing policies don't usually cover these incidents. Homeowners insurance policies generally only cover foundation damage that originates above the slab and is caused by hazards such as fire, water, or vandalism.
Damage to the foundation below the slab, normal wear and tear, and damage due to poor maintenance are generally not covered. Mold is hazardous to health and is also a sign that there could be a problem with the foundation of the house due to water damage. Foundation coverage, more correctly called “foundation water damage coverage,” generally serves only to reimburse the policyholder for a foundation problem that is due to water damage to the pipes. Most policies cover damage caused by sudden and unexpected events, such as strong windstorms or fires, but they don't cover damage that is included in routine home maintenance.
