Are Landslides Covered by Homeowners Insurance?

Homeowners insurance is a financial safeguard, offering protection against numerous perils that can damage a property. Many individuals seek to understand the extent of this protection, particularly concerning natural disasters, which can be unpredictable and devastating. A common question arises regarding coverage for landslides, events that can cause significant structural damage and financial hardship. While homeowners insurance typically addresses a wide array of risks, certain natural occurrences are often treated distinctly within policy frameworks.

Standard Homeowners Insurance and Earth Movement Exclusions

Standard homeowners insurance policies, such as the widely used HO-3 and HO-5 forms, generally do not provide coverage for damage resulting from landslides. This exclusion stems from what insurers term the “earth movement” exclusion. This broad exclusion encompasses various natural ground movements, including landslides, mudslides, mudflows, sinkholes, and earthquakes.

The rationale behind excluding earth movement perils is their unpredictable and catastrophic nature. Landslides can cause widespread damage, making risk assessment and financial modeling challenging for insurers. Insurers define earth movement as the sinking, rising, shifting, expanding, or contracting of the earth, regardless of its trigger. These high-risk perils are excluded from standard coverage to manage the financial viability of insurance products.

Limited Coverage Scenarios and Policy Nuances

While standard homeowners policies broadly exclude landslide damage, specific scenarios might offer related coverage. If a covered peril, such as a fire or explosion, directly causes the ground to collapse, leading to a landslide, the damage from the fire or explosion and potentially consequential damage could be covered. This is a rare circumstance, and coverage depends heavily on specific policy language and the principle of proximate cause.

It is important to differentiate between a “landslide” or “mudslide” and a “flood” in the context of insurance. Flood damage is also excluded from standard homeowners policies and requires separate flood insurance. Insurers classify mudslides as earth movement, not a flood, though a mudflow might be covered under flood insurance if it meets the National Flood Insurance Program’s definition. Limited endorsements for specific types of earth movement damage might be available, but these are not comprehensive landslide solutions.

Securing Specific Landslide and Earth Movement Protection

Since standard homeowners policies typically exclude landslides, homeowners often need to explore specialized insurance options. A primary solution for covering perils excluded by standard policies, including landslides, is a Difference in Conditions (DIC) policy. This standalone policy fills coverage gaps for events like landslides, earthquakes, and floods. It must be purchased separately from a standard homeowners policy.

DIC policies are customizable and can provide broader coverage or higher limits for excluded perils. Specialized carriers or surplus lines insurers usually offer these policies, underwriting risks that standard insurers typically avoid due to their higher risk profile. There is no comparable federal program specifically for landslides, meaning private DIC policies are the primary avenue for comprehensive landslide protection.

Navigating a Landslide Event and Policy Review

Homeowners should proactively review their existing homeowners insurance policy to understand its specific exclusions and limitations regarding earth movement. Consulting with an insurance agent or broker can help clarify coverage for landslides and explore options for dedicated landslide protection. Assessing personal risk based on property location, geological surveys, and historical data of earth movement is also a prudent step.

If a property is affected by a landslide, homeowners should prioritize safety and then thoroughly document all damage. This includes taking comprehensive photos and videos and creating an inventory of damaged items. Promptly notifying the insurance company is important, even if direct landslide damage might be excluded. The insurer can then guide the homeowner on potential aid or assess if other aspects of the event might warrant a claim.