Does an HO-3 policy cover settling of a foundation or structure?

An HO-3 policy, which is a standard homeowners insurance policy, typically does not cover the settling of a foundation or structure. This type of coverage generally excludes damage caused by settling, cracking, or the movement of the ground beneath the home, as these issues are often considered a part of normal wear and tear or a result of the natural settling process that occurs over time.

Furthermore, foundation issues are often related to soil conditions, poor construction, or inadequate drainage, which are also not covered under the policy. The intent of the HO-3 policy is to protect against sudden and accidental damages rather than gradual or preventable issues such as settling. Therefore, the clarification that an HO-3 policy does not extend to cover settling provides a clearer understanding of the limits of such a homeowners insurance policy and the types of risks that are covered.