Foundation Crack Repair & Waterproofing System

Edmonton, Sherwood Park, St. Albert: 780-430-0959

Foundation Cracks: Real Estate Investments and Insurance Coverage

One of the most frightening phrases a homeowner, buyer or seller can hear is “damaged foundation,” but it doesn’t have to be. How a cracked foundation or other foundation damage will affect your investment depends on several factors. Here are some things to consider.

Buyers: Often, people seeking to purchase a home will immediately remove a prospective property from their list if there is foundation damage. Before you walk away, get more information.

  • • How severe is the damage?
  • • What will it cost to repair the damage?
  • • Is the seller willing to have the foundation fixed or to lower the cost of the property to cover the cost of repair?

Depending on the answers to these questions, the property may still be a good investment. As long as it can be repaired, a damaged foundation can reduce competition for the property and give you room to negotiate a price reduction which can cover repair costs.

Keep in mind that the integrity of your property can have an impact on whether you can get a home loan and what your rates will be if you do. Some mortgage companies will require that the foundation repair is done before the property is financed or that a more substantial down payment is made. Before making your decision, you should be sure to have a professional foundation repair company inspect the damage.

Sellers: If you are trying to sell your home and you know that there are foundation issues the first question on your mind is “should I repair it before I sell?” The answer to that question is it depends. Ask yourself this.

  • • Are you willing to accept a lower price to cover foundation repair costs?
  • • Are you willing to pay to repair the foundation damage?
  • • How many prospective buyers do you want to view your home?

Whether you have the foundation repaired before you sell or not you will have to disclose the damage to your real estate agent and prospective buyers. Once the repairs are done the repairs will be public information and may prevent some buyers from looking at your property. It may be wiser to wait to repair the foundation and to discuss with potential buyers the extent of the foundation damage, the estimated cost and if they would prefer to have you pay to repair the foundation before the sale or take a reduction in price to do it themselves. Keep in mind that some buyers may have a hard time financing a home with a cracked or damaged foundation.

If you choose to repair the damaged foundation before you put your home on the market be sure to hire a qualified professional foundation repair company that will honor their warranty after the sale. It can be an additional selling point when negotiating with buyers.

Insurance: Whether you have a cracked foundation or more extensive foundation damage it is up to the individual insurance company if they will cover your property and how much your coverage will cost. To determine if your home can be insured speak to your insurance agent and be sure to have a report of the damage from a professional foundation repair company to show the limit or extent of the damage.

If you are already insured and you discover damage to your foundation chances are your insurance company will not cover the cost of repair. Insurance is intended to cover damages caused by accidents or natural disasters. Keeping your foundation in good repair is considered standard home maintenance and is not typically included in your home coverage.

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