Is subsidence and concrete cancer covered by home insurance?
Where Australian home insurance typically does and does not pay for structural movement and concrete repair, and how to read your policy before you assume you are covered.
This is the question every homeowner asks the moment they suspect a footing problem, and the honest answer is: sometimes, but often not, and it depends heavily on the cause and your specific policy. Insurance turns on why the damage happened, so the same crack can be covered on one policy and excluded on another. Read the Product Disclosure Statement (PDS) before you assume anything, and speak to your insurer early.
What is often excluded
Standard Australian home building policies commonly exclude damage that happens gradually or from an inherent condition. That tends to catch the most common causes of subsidence: reactive clay soil swelling and shrinking with the seasons, movement from tree roots, gradual settlement, poor original construction or footing design, and lack of maintenance. Wear and tear and pre-existing damage are also typically excluded. Because so much Australian footing movement is slow and soil-driven, a large share of subsidence claims fall outside cover for these reasons.
What may be covered
Cover is more likely when the damage is sudden and caused by a specific insured event. Many policies respond to damage from an escape of liquid, for example a pipe that suddenly bursts and washes soil from under a footing, or from other defined events like a storm or impact, subject to the policy terms. Some insurers offer optional or specific cover for actions of the sea or for particular kinds of ground movement. The distinction the insurer draws is usually between a sudden, accidental, identifiable event, which may be covered, and gradual deterioration, which usually is not.
How to approach a claim
Concrete cancer follows the same logic and is frequently treated as gradual deterioration, so it is often not covered on a standard policy, though the strata or building context matters for apartments. Whatever the cause, the practical steps are the same. Document the damage with dated photos as soon as you notice it, report it to your insurer promptly rather than after months of monitoring, and get an independent structural engineer's report on the cause, because the cause is what the claim turns on. If you are unsure of your rights, the general insurance code and free dispute-resolution services can help. Do not assume you are covered, and do not assume you are not; confirm it in writing against your own PDS.
Common questions
Does home insurance cover concrete cancer?
Usually not on a standard policy, because concrete cancer develops gradually and is generally treated as deterioration or an inherent condition rather than a sudden insured event. There can be exceptions depending on the cause and, for apartments, the strata policy. Always check your specific Product Disclosure Statement and ask your insurer in writing.
My footing moved because of a burst pipe. Am I covered?
You are more likely to be covered when damage results from a sudden escape of liquid, such as a pipe that suddenly bursts, than from gradual leaking or soil movement, but it depends on your policy terms. Report it quickly, keep dated evidence, and get an engineer's report identifying the cause, because the cause determines the outcome.
Sources
- Insurance Council of Australia, understanding home insurance
- Moneysmart (Australian Government), home insurance
General information only. Confirm details for your property with a licensed structural engineer.
Not sure what you are dealing with?
Tell us what you are seeing and roughly where the property is. We will match you with a remedial or underpinning contractor serving your area. It is free and there is no obligation.