Are Landslides Covered by Homeowner’s Insurance?

Homeowners often face uncertainty regarding insurance coverage for property damage from natural events. Landslides, a form of earth movement, raise particular concerns about financial protection. Understanding insurance policies is important for homeowners seeking to safeguard their investment.

Homeowner’s Insurance and Earth Movement

Standard homeowner’s insurance policies typically do not cover damage caused by earth movement. This exclusion encompasses various geological events, including landslides, mudslides, sinkholes, and earthquakes. Insurers generally define “earth movement” to include the sinking, rising, shifting, expanding, or contracting of the earth.

While direct damage from a landslide is usually excluded, some policies may provide coverage for damage from a covered peril that occurs as a result of the earth movement. For example, if a landslide causes a gas line to rupture and results in a fire, the fire damage itself might be covered. This concept, known as “ensuing loss,” means that while the initial cause is excluded, a subsequent, covered peril could still trigger coverage. However, direct structural damage from ground shifting remains uncovered.

Specific Landslide and Earth Movement Policies

Given the exclusions in standard policies, specialized insurance options are available for homeowners seeking protection against landslides and other earth movement events. These coverages are not automatically included and must be specifically purchased, often as separate policies or endorsements. One common option is a “Difference in Conditions” (DIC) policy, sometimes referred to as a “Natural Catastrophe” policy. These policies are designed to fill the gaps left by standard homeowner’s insurance, covering perils like landslides, mudflows, earthquakes, and sometimes floods.

These specialized policies typically cover structural damage to the home, including the foundation, walls, and roof. They may also extend to other structures on the property, such as detached garages or retaining walls. Coverage often includes the cost of removing debris from the property following a landslide. If the damage renders the home uninhabitable, these policies may provide for additional living expenses, covering costs like temporary housing. Mudflows, which involve a river of liquid mud, can sometimes be covered by flood insurance, distinct from landslide coverage.

Important Policy Considerations

When considering any insurance policy for landslide coverage, understanding the specific terms and conditions is crucial. Policies define “earth movement” and “landslide” in particular ways, and these definitions directly impact what is covered. Some policies differentiate between a landslide and a mudslide, or between sudden and gradual earth movement, with gradual erosion often being excluded.

Deductibles for earth movement coverage can differ significantly from standard homeowner’s deductibles. They are frequently expressed as a percentage of the dwelling’s insured value, rather than a fixed dollar amount. Common percentages range from 5% to 20% of the home’s replacement cost. For instance, a 10% deductible on a $400,000 home means the homeowner is responsible for the first $40,000 of covered damage. Policies may also include sub-limits, which are maximum payout amounts for specific types of damage or perils.

Filing an Insurance Claim

Should a landslide occur and you believe you have coverage, promptly notify your insurance provider about the incident. This initial contact can often be made via phone or through an online claim portal.

Thorough documentation of the damage is important. This includes taking clear photographs and videos of all affected areas, both inside and outside the home, as soon as it is safe. Maintaining a detailed list of damaged personal property can also support your claim. If temporary repairs are needed to prevent further damage, take reasonable steps to mitigate loss and keep all receipts for these expenses. An insurance adjuster will be assigned to assess the damage; cooperating fully by providing all requested information and documentation, including any professional assessments from contractors, is essential for a timely resolution.