December 7, 2012

Our insured indicates that his concrete block basement wall cracked as a result of this year's drought and he has been reading articles about how common this is. Has there been any consideration given to coverage for this under a homeowners form? He had water enter the basement which I feel is excluded under the water damage exclusion. Also, the cracking foundation is excluded under the exclusion for cracking, bulging, expansion, etc. or earth movement. On the other hand there is no specific exclusion for drought, so would the loss be covered?

 Ohio Subscriber

In the 2011 ISO HO 00 03, the exclusion for earth movement states that earth movement is excluded regardless of whether it's caused by an act of nature or other cause. The earth movement caused the foundation to crack, therefore there is no coverage.