The Reason Insurance May Not Cover Damage from Settling Foundation

Question: We have owned a ranch home in an isolated area of Yavapai County for more
than 10 years. The water table has been going down since we moved here, and we
now have 2” cracks in our flooring from the settling of our foundation, which is only
getting worse. We filed a claim with our homeowners’ insurance company, which
was denied because the destruction of our home was not a “casualty.” If the
collapsing of your home is not considered a casualty covered by homeowners’
insurance, what is a “casualty”?
Answer: Most insurance policies define a “casualty” covered by their insurance policy as
an “immediate occurrence” or similar language, e.g., flooding or fire damage to the
home.