Are Retaining Walls Covered by Insurance?

Retaining walls are structures designed to hold back soil, preventing erosion and creating level areas on sloped land. They are often used in landscaping to manage water runoff and provide stability. These walls can be constructed from various materials, including concrete, stone, brick, or timber. The question of whether retaining walls are covered by insurance is not straightforward, as coverage depends on several factors, including the specific policy type, the cause of damage, and any applicable exclusions.

Standard Homeowners Insurance and Retaining Walls

A standard homeowners insurance policy, such as an HO-3, is the most common type of coverage for single-family homes. This policy covers the physical structure of your home, personal belongings, and liability. Under an HO-3 policy, retaining walls are categorized under “other structures” coverage, which extends to detached structures on your property like sheds, fences, or detached garages. Most insurance companies automatically include other structures coverage, often set at about 10% of your dwelling coverage limit. For example, if your home is insured for $300,000, your other structures coverage might be around $30,000.

Coverage for retaining walls under an HO-3 policy is based on an “open perils” or “all-risk” basis. This means damage is covered unless the cause is specifically excluded in the policy. Common perils that cause sudden damage include fire, lightning, windstorms, hail, explosions, vandalism, and impact from vehicles. For instance, if a tree falls on your retaining wall during a windstorm, or if a vehicle strikes it, the damage would be covered.

Typical Damage Exclusions

While standard homeowners policies cover many sudden and accidental events, numerous common causes of retaining wall damage are excluded. One significant exclusion is earth movement, which encompasses events such as landslides, mudslides, sinkholes, and earthquakes. This exclusion applies because these are considered natural geological events rather than sudden, unforeseen accidents.

Water-related damage is another frequent exclusion, particularly when it stems from subsurface water, seepage, or flood. Standard policies do not cover flood damage, requiring a separate flood insurance policy for protection. Damage resulting from wear and tear, deterioration, rot, mold, or issues arising from poor maintenance, faulty design, or improper construction are also excluded. These are considered preventable issues or expected degradation over time, falling under homeowner responsibility rather than insurable perils.

Additional Coverage Possibilities

Homeowners have options to secure coverage for perils excluded from standard policies. Earthquake insurance is a separate policy or endorsement that can provide protection against damage caused by seismic activity, including some forms of earth movement. Similarly, flood insurance, available through the National Flood Insurance Program (NFIP) or private insurers, is necessary to cover damage from flooding, which is a common threat to retaining walls.

Some specialized endorsements might be available for specific types of earth movement, depending on the insurer and geographic location. These endorsements are not universally offered and often come with specific limitations and deductibles. Consulting with an insurance agent is recommended to understand the available options and to address specific risks. An agent can help navigate the complexities of policy language and identify endorsements that might bridge gaps in standard coverage.

Steps for an Insurance Claim

If a retaining wall is damaged and a homeowner believes it might be covered by their insurance, several steps are important. The first action involves documenting the damage thoroughly and immediately. This includes taking clear photographs and videos from multiple angles, capturing the extent of the damage before any repairs begin.

Preventing further damage is another important step. Homeowners should take reasonable, temporary measures to protect the property from additional loss, such as covering exposed areas or diverting water, while keeping records of any expenses incurred for these actions. Promptly contacting the insurance company to report the damage is important, providing details like the policy number, the date the damage occurred, and a description of the incident. Cooperating fully with the assigned insurance adjuster during their investigation is also necessary. Finally, obtaining detailed repair estimates from qualified contractors will support the claim, providing a clear financial assessment of the necessary work.