Does Homeowners Insurance Cover Slab Leaks?

Serving Frisco, Lubbock, San Angelo, & Abilene

This is a super important topic, so we wanted it to be closer to the top of this discussion! Some insurance providers cover this repair and some do not.

The important part that you need to ask your insurance company TODAY before you have any foundation or structural-related issues is:

“Does my homeowner’s insurance policy have the required endorsement for coverage of slab and foundation-related damages caused by water leaks from BOTH water lines and sewer breaks?”

Surprisingly, about 35-40% of the homeowners that we work for do NOT have this important policy endorsement. In most cases, you can call and have the endorsement added for less than $80 per year. This could cover tens of thousands of dollars in excavation or what they call “access work.” Interior home damage to flooring or furnishings may be covered by your regular homeowner’s policy. But it does not cover the “access to” OR “the repair of” the broken pipe (water line or sewer line).

Here is what we see: the bigger insurance companies with all of the TV commercials and big-name actors and sports personalities seem to be the worst ones. That’s because they don’t tell you to consider the “slab leak or foundation endorsement” or how little it will cost on an annual basis.

We also see that they pay out less (per damage line) and/or cover significantly less than some of the other companies. These insurance providers also seem to issue denial letters at a much more frequent rate than others.

To be fair, these major big-name companies do dominate the insurance landscape and have a lot more policies or exposure than some of the other lesser-known companies. But to our knowledge and recollection, none of the smaller insurance companies have ever denied a homeowners claim.

Typically, people shop for insurance by price. That endorsement that only adds $75 a year to the policy could be a deciding factor for some if you do not know the questions to ask. We are guessing it is often just left off or not mentioned unless asked for.

Ultimately, we do not know why insurance companies make half of the decisions they make other than it’s a business and they’re trying to make a profit. The important takeaway here is that before you have a major problem and/or significant out-of-pocket expense, get yourself covered.

Ready for Service You Can Count On?

Contact the experts at Earl's Plumbing, Heating, & Air today to schedule your next appointment!

Request Service