Foundation Crack Repair & Waterproofing System

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

Foundation Cracks: Real Estate Investments and Insurance Coverage

Many successful and aspiring entrepreneurs are entering into the real estate industry. Those investing in real estate always have their eyes open for money-making opportunities to purchase a property at a low price, only to turn around and sell it for a profit when the market swings back up.

In addition to residential or commercial properties, investors are turning their attention to buying land. By staying on top of market trends, they buy a piece of land in a location that shows promise for a sudden rise in prices. As the prices rise and the investor hits the target selling price, they sell the piece of land as quickly as possible for the highest profits.

Protect Your Real Estate Investment
Real estate investors need to take out insurance to protect their assets. Should anything happen in the future, such as a crack in the foundation, the owner would want to avoid losing too much money. The real estate and insurance industries affect each other so it’s important to find the right type of insurance for a particular investment.

Securing adequate insurance coverage for real estate is no small task, and those investing in real estate must research the options thoroughly to find the best option for them. To qualify for insurance policies, the real estate investor will need to show that everything with the property and the finances is in good condition.

There are things every property owner should do to maintain the foundation, such as setting up proper drainage, in order to avoid expensive repairs. Even with proper maintenance, there are still times when a repair is unavoidable. When a foundation repair is required, you should contact your insurer provider immediately to find out if they will cover the repair.

Are You Covered for Foundation Repair?
Review your policy to check how your policy outlines foundation damage in its coverage. In general, the smaller cracks that occur from settling are not covered, though other types may be included. Take a look through the insurance policy for foundation coverage for flood insurance, erosion, ground cover collapse or earth movement.

When a foundation problem arises, you need to know what is covered by your insurance policy. Some insurance policies only cover foundation damage if the damage is linked to a covered incident. Finding out if your insurance policy covers foundation repair requires you to talk to a representative and review the policy. Unfortunately, damage to the foundation is most commonly caused by the normal expansion and contraction of the earth as the seasons change, which is rarely protected under an insurance policy.

When Insurance Doesn’t Cover the Repair
Even if your homeowner’s insurance doesn’t cover foundation repair, remember that your foundation supports your entire real estate investment and your home. Choosing not to make the repair could put your property and finances at further risk.

As time goes on, your foundation will only get worse and additional structural damage will ensue. If you fail to repair the foundation, the insurance company can refuse claims for any damage that happens as a result of the initial foundation problem. In the most extreme cases, the property could ultimately be rendered unlivable.