Two questions, in order
Filing a foundation claim is really two decisions. First: is it even covered? Standard HO-3 policies exclude the common causes — settling, earth movement, expansive clay — so most foundation claims are denied outright. Only sudden covered perils (a burst supply line eroding the soil, a vehicle striking the house, a covered plumbing leak) get paid. Check the coverage verdict before anything else.
Second, if it’s covered: is filing worth it? The insurer pays your damage minus the deductible once, but a claim typically raises your premium 10–40% for several years. On a modest repair those higher premiums can add up to more than the check. The calculator makes that trade explicit — payout on top, multi-year premium cost below, net result at the bottom.
Because foundation claims are denied so often, they carry extra risk: even a denied claim lands on your CLUE report for ~7 years and can raise your rate or cost you renewal. Running the numbers first keeps you from trading a small payout for a lasting mark.
Frequently asked questions
Is it worth filing a foundation insurance claim?
First, most foundation damage isn’t covered at all — settling, earth movement, and expansive soil are excluded. If your damage IS from a covered peril (a burst pipe washing out soil, a vehicle hitting the house), then it’s worth filing when the payout beats the extra premiums you’ll pay over the years the surcharge lasts. The calculator shows that net number.
How much does one claim raise your premium?
A single claim commonly raises a homeowners premium by roughly 10–40%, and that surcharge typically lasts about 3–7 years before rolling off. Water-damage claims in particular can raise rates or affect renewal. Adjust the two inputs to match your own renewal notice.
When should you NOT file a foundation claim?
Skip it when the cause is excluded (you’d be denied anyway), when the damage is at or below your deductible, or when the payout is small enough that higher premiums claw it back within a few years. Any claim — even a denied one — also stays on your CLUE loss-history report for about seven years.
Does a denied claim still hurt me?
Yes. Because most foundation damage is excluded, a foundation claim is more likely than average to be denied — and even a denied or withdrawn claim is recorded on your CLUE report and can count against you at renewal. That’s why it pays to check coverage and run the numbers before you file.
Sources & methodology
- Insurance Information Institute (III) — what homeowners insurance covers
- IRMI — Earth Movement Exclusion (standard property-policy definition)
- Does homeowners insurance cover foundation damage? — Progressive
- Foundation repair & homeowners insurance — Policygenius
- Your state Department of Insurance — the authority on what your policy must cover and how to dispute a denial
Estimates compiled from the sources above and standard cost models — not engineering, professional, insurance, or legal advice, and may not reflect your policy or local prices. See our full methodology and disclaimer.