It depends on what caused the damage. The most likely causes of foundation damage, such as soil expansion, the small cracks that come from settling and contraction or poor construction, are typically excluded from most insurance policies.

You may purchase the sinkhole endorsement, which will cover you for settling. However, this is a process that requires a geological survey to be performed at the homeowner’s expense. Only on the condition that this geological survey is passed would you able to get the sinkhole and settling coverage. Look at your policy or talk to your agent to see if your policy specifically covers foundation damage.