This gets dicey. Many major events that would cause foundation damage, including fire and impact from vehicles crashing into it, will be covered under the policy. However, a typical homeowners insurance policy will not cover the most frequent causes of broken foundations. So, on paper, all foundation damage that you get from "acts of God" like fire and tornadoes will be covered by the policy. However, if the reason for your foundational damage is more mundane, chances are your claim will be denied
. Wear and tear, natural settling, earthquakes, and flood damage do not get covered by a standard policy. If you have damage from these things, you might have to dig into your own pocket. The only time that this is not true is if you have a waiver or rider that covers additional damage of a specific type, such as flood insurance.