Homeowners insurance typically does not cover cracks in walls, as they are usually considered normal wear and tear or maintenance issues. Coverage applies only if the cracks result from a sudden, accidental, and "covered peril," such as fire, severe storm damage, or a burst pipe.
Typically, buildings insurance covers the cost of repairing damage caused by subsidence, which may include cracks in walls and rendering. It's important, however, to check your buildings insurance policy details to understand what it specifically covers.
If your home's physical structure — the wall, roof, or foundation — suffers damage from covered threats like fire, windstorms, or hail, your insurance may step in to help pay for repairs or rebuilding costs. This coverage may also extend to other structures on your property, such as a detached garage or shed.
Insurance might cover cracks that are the result of a sudden insured event, like a vehicle impact or flooding. It can also cover garage cracks from subsidence, if your home is affected by subsidence at the same time. Always check your policy details or speak to your insurer to see what's covered.
You should seek an expert opinion if a crack is wider than a 10p coin (approx. 3mm), is growing, or is diagonal. If the crack appears alongside other signs like sticking doors, sloping floors, or skirting boards pulling away from the wall, it is a strong indicator of a potential structural issue.
According to a 2024 Weiss Ratings study, Farm Bureau Property & Casualty Insurance Co. had the highest denial rate for homeowners' claims (70.5%), with USAA, Farmers, and Allstate also showing significantly high denial rates (around 48-50%) for 2023, often due to factors like lack of coverage for climate events (floods, fires), high deductibles, or missing documentation. However, top performers like Chubb and Travelers had much lower denial rates, around 6%.
The 80% rule in homeowners insurance requires you to insure your home for at least 80% of its total replacement cost to receive full coverage for partial losses, preventing underinsurance and significant out-of-pocket costs if damaged; if you fall below this threshold, your insurer pays a proportionate amount of the claim, not the full repair cost. This rule ensures you can rebuild, factoring in current material and labor costs, but excludes land value.
Reduced Coverage: Filing multiple claims might prompt your insurer to reduce or limit coverage in high-risk areas, leaving you more vulnerable in the event of future damage. Non-Renewal or Denial: The worst-case scenario is your insurer deciding not to renew your policy or denying coverage altogether.
When you should NOT file a home insurance claim
The 3 D's of insurance are “delay, deny, and defend.” They represent the 3-part strategy insurance companies use to avoid paying policyholders what they may be owed. These tactics may pressure some Americans into accepting lowball settlements, and they can result in claims being held up in court for years.
Homeowners insurance typically doesn't cover wear and tear. Home foundations shift over time, which can lead to cracks in your home's structure. Like repainting a faded wall or clearing your gutters, keeping tabs on an aging foundation is considered the homeowner's responsibility.
Professional evaluation by a structural engineer is recommended for significant or expanding wall cracks to assess and address potential structural damage.
Construction-related issues typically fall under the builder's responsibility, while cracks resulting from natural settlement or external factors often rest with the homeowner.
Homeowners insurance might pay to replace an entire floor, but it usually only covers the damaged section (like for water damage), paying for "like-for-like" materials up to the point of a door or a natural break, unless the material is discontinued or impossible to match, which often triggers negotiation for full-floor replacement to maintain uniformity, with coverage depending on your policy type (ACV vs. RCV) and state laws.
The 80/20 rule in insurance refers to two main concepts: the Medical Loss Ratio (MLR) under the Affordable Care Act (ACA), requiring insurers to spend 80% (85% for large groups) of premiums on care or refund the rest, and a common home insurance clause where you must insure your home for at least 80% of its replacement cost to receive full coverage for partial losses, preventing underinsurance. In health insurance, it limits administrative costs and profits, while in homeowners insurance, it ensures adequate dwelling coverage to avoid penalties on claims.
Common denial reasons: Missing documents, missed deadlines, incomplete claim forms, policy exclusions, lack of sufficient evidence, coverage lapses, or failure to follow claim procedures often lead to denial.
The size and location of wall cracks are key factors to consider. Large cracks wider than 5 millimeters are a cause for concern, especially if they are diagonal, horizontal or above a door frame.
If the cracks you're trying to repair are quite large and deep, or wider than five millimetres, you may need to contact a structural engineer who can determine the cause and how it can be fixed. However, small hairline cracks in a plastered wall can be repaired relatively easily. Speak to a professional for advice.