The general rule
Homeowners policies are built to cover sudden, accidental damage, not wear and tear. Foundation movement from North Texas clay swelling and shrinking happens slowly over years, so most policies exclude it. Policy language often lists settling, cracking, shrinking, bulging or expansion of foundations among the exclusions.
When insurance may help
The main exception people ask about is a plumbing leak under the slab. When water from a leak washes out or softens the soil under part of the house, the damage can be tied to a sudden event instead of normal settling. Whether that's covered depends on the exact policy form, any endorsements you bought, and the facts of the claim. This has been argued over in Texas for years, and outcomes have varied with the policy wording.
Some Texas policies offer an add-on for foundation damage caused by water, usually with its own dollar limit. If you're not sure whether you have one, your agent can tell you.
What to check in your policy
- The exclusions section: look for wording about settling, cracking or foundations
- Any endorsements for water damage or foundation water damage, and their limits
- Your deductible, which Texas law requires you to pay yourself
- Time limits for reporting a claim
If you think a leak caused it
- Get the leak found and fixed by a licensed plumber, and keep their report.
- Take photos of the cracks, doors and floors before any repairs.
- Call your agent or insurance company to ask whether to file a claim.
Where we fit in
A claim is between you and your insurance company. Texas doesn't allow a contractor doing the work to act as your adjuster, so we don't handle claims. What we can do is inspect at no charge and give you photos and a written bid, which you're welcome to share with your insurance company. See what repairs usually cost in our DFW cost guide.
This post is general information, not legal or insurance advice. Your policy and your agent have the final word.