Owning a home is one of life’s greatest joys and accomplishments. Your home is where memories are made and is often your most significant investment. With this accomplishment comes the responsibility of maintaining your home’s condition.
Many North Texas homeowners invest in home warranties to help manage this responsibility, seeking protection for their home’s systems and appliances. These warranties promise peace of mind, but do they deliver on one of the most critical and potentially expensive issues your home might face: foundation problems?
As foundation repair experts serving the North Texas community for three generations, we have heard from homeowners who are surprised to learn the limitations of their home warranty coverage. Here is everything you need to know about home warranties and foundation repair coverage.
What Is a Home Warranty?
Unlike homeowners insurance, which typically covers damage from sudden events like fires or storms, a home warranty is a service contract that covers the repair or replacement of major home systems and appliances due to normal wear and tear.
Standard home warranty plans usually cover:
- HVAC systems (heating and air conditioning)
- Electrical systems
- Plumbing systems
- Kitchen appliances (refrigerator, oven, dishwasher)
- Washer and dryer
- Water heater
When a covered item breaks down, you contact your warranty company, pay a service call fee (typically $75-125), and a contractor arranged by the warranty company performs the repair or replacement if it’s determined to be covered under your contract.
Standard Home Warranty Coverage and Foundations
Does a home warranty cover foundation repair? No, standard home warranties typically do not cover foundation repairs.
Foundation issues are considered structural problems rather than mechanical or system failures. Home warranties are designed to cover systems and appliances with moving parts that wear out over time, not the structural components of your home.
Homeowners who purchase a house with foundation issues have to find other avenues to pay for the repairs. Foundation repair and other structural elements like roofs, walls, and flooring are among the most significant exclusions in standard home warranty contracts.
Types of Foundation Damage and Their Causes
Foundation problems are common in North Texas because clay soil swells when wet and shrinks when dry. Hot, dry summers and occasional heavy rainfall can cause a cycle of expansion and contraction that puts immense pressure on foundations, causing them to shift, crack, and settle unevenly.
Here are the common types of foundations in our region and what can cause them to shift.
Pier & Beam Foundations
Pier and beam foundations offer some flexibility with soil movement. These foundations are especially beneficial on sloped lots where their adjustable height capabilities allow for level construction while providing excellent access to plumbing and electrical systems. Over time, piers can sink, and beams can rot.
Block & Base Foundations
Block and base foundations rely on concrete blocks stacked on a concrete footing base, creating a sturdy platform but potentially requiring more extensive repairs if foundation issues occur. When properly constructed and maintained, block and base foundations can provide exceptional stability even in areas with moderate soil movement.
Slab Foundations
Popular in newer homes, modern slab foundations often incorporate post-tensioned cables or steel reinforcement to withstand the unique soil conditions of North Texas. However, these concrete slabs can crack or settle unevenly as the soil beneath them shifts, and they still require proper drainage and moisture management around the perimeter.
Significant causes of foundation damage include:
- Soil movement from seasonal moisture changes
- Poor drainage around the home
- Plumbing leaks under or near the foundation
- Tree roots drawing moisture from the soil
- Improper initial construction
- Extreme weather events like the Texas freeze in 2021
When Foundation Repairs Might Be Covered
While standard coverage typically excludes foundations, there are some scenarios where certain repair costs might be covered. If you face foundation issues that fall into these narrower coverage categories, reading the fine print of your warranty agreement could save you thousands of dollars.
Indirect Coverage
Some home warranties might cover damage that indirectly affects your foundation. For example, if a covered plumbing leak caused foundation damage, the warranty might cover the plumbing repair (though likely not the resulting foundation damage).
Structural or Enhanced Coverage Add-ons
Some warranty companies offer additional coverage for structural elements at an extra cost. However, these add-ons often come with:
- Significantly higher premiums
- Higher service fees
- Strict pre-existing condition exclusions
- Caps on coverage amounts (often inadequate for major foundation work)
- Detailed terms about what constitutes a “qualifying” foundation issue
Before purchasing such add-ons, read the fine print carefully. You want to make sure the additions are worth it and that you’ll get the comprehensive coverage you expect.
Builder’s Warranties and Foundation Coverage
If you’ve purchased a newly built home, your situation is different. Most new homes come with a builder’s warranty, which typically provides more comprehensive protection than standard home warranties, including some foundation coverage.
Builder’s warranties generally include:
- 1-year coverage for workmanship and materials
- 2-year coverage for mechanical systems (plumbing, electrical, HVAC)
- 10-year coverage for major structural defects, including foundation issues
The 10-year structural coverage typically only applies to severe defects that threaten the home’s structural integrity and are directly attributable to construction defects, not normal settling or soil movement.
It’s important to note that builder’s warranties are specifically for new construction and have a defined expiration date. Once your builder’s warranty expires, you will need to consider other protection options.
Proactive Maintenance Is Your Best Defense
Given the limitations of warranty coverage, the smartest approach for North Texas homeowners is proactive foundation maintenance and early intervention.
Warning Signs to Watch for:
- Cracks in walls, floors, or ceilings, especially near doors and windows
- Doors and windows that stick or won’t close properly
- Uneven floors or noticeable slopes
- Gaps between walls and floors or ceilings
- Exterior cracks in the foundation or brickwork
Preventative Maintenance Tips:
- Maintain consistent soil moisture around your foundation (not too wet, not too dry)
- Ensure proper drainage away from your home
- Clean gutters regularly to prevent water overflow near the foundation
- Schedule regular foundation inspections with qualified professionals
Early detection and addressing minor issues can prevent major foundation problems that might cost tens of thousands of dollars to repair. Regular checkups and preventative maintenance are far less expensive and disruptive.
Alternative Coverage Options
Since standard home warranties typically don’t cover foundations, what other options do homeowners have? Keep in mind that there are subtle differences between coverage types. The fine print often contains crucial details determining whether your claim will be approved or denied.
Homeowners Insurance
Standard homeowners insurance generally doesn’t cover foundation repairs resulting from normal wear and tear or soil movement. However, it might cover foundation damage resulting from specific covered perils such as:
- Sudden plumbing breaks
- Fire
- Explosion
- Vehicle impact
- Certain natural disasters (depending on your policy)
Specialized Structural Warranties
Some companies offer standalone structural or foundation warranties. These specialized policies focus specifically on structural elements rather than systems and appliances.
While potentially more relevant to foundation issues, they still have limitations and exclusions, so carefully review the terms before purchasing.
Why Choose Pinnacle Foundation Repair
At Pinnacle Foundation Repair, we understand that foundation issues can be stressful and confusing. That’s why we’ve built our three-generation family business on principles that set us apart:
- Radically Honest Evaluations: We provide transparent assessments. About 33% of our evaluations reveal no work needs to be done.
- Expert Knowledge of North Texas Foundations: We have extensive experience with foundations in North Texas soil conditions.
- Transferable Lifetime Warranty: We stand behind our work with a transferable lifetime warranty on our steel and steel transition systems.
- No Guesswork: We use advanced technology, such as ground-penetrating radar, to eliminate guesswork and provide accurate assessments.
- Independent Structural Engineer Approval: For your peace of mind, an independent, non-affiliated structural engineer reviews and approves all our foundation repair plans.
Next Steps to Protect Your Home’s Foundation
While it would be convenient if standard home warranties covered foundation repairs — especially given the soil conditions and climate challenges in North Texas — most don’t. Rather than assuming you’re covered, take proactive steps to maintain your foundation, recognize early warning signs, and develop a financial plan for potential repairs.
Don’t wait until cracks in the walls or sticking doors become major structural issues. Schedule a free, no-obligation foundation evaluation today. We’ll walk you through any issues we find and explain them in plain language. If no repairs are needed, we’ll tell you that, too. Your home deserves the support of North Texas’s most trusted foundation experts.
