Does Homeowners Insurance Cover Subsidence?

Understanding how homeowners insurance addresses ground movement damage is crucial for property owners. Shifting earth can cause extensive structural issues and financial strain. This article clarifies policy terms, common exclusions, and the claims process for ground movement events.

Understanding Ground Movement and Property Damage

Ground movement is the shifting of earth beneath a property, causing structural damage. Primary types include subsidence, heave, and landslip. Subsidence is the sinking of ground, often due to clay soil shrinkage from dry periods, tree roots extracting moisture, leaking drains washing away soil, or historical mining activity creating underground voids.

Heave is the upward movement of ground, pushing foundations up. It results from soil expansion due to increased moisture, often after large trees are removed. Landslip, also known as landslide, is the sideways movement of earth or rock, common on slopes due to erosion or instability. It can shift foundations horizontally, causing severe structural issues.

Settlement is the downward movement of a property caused by the building’s weight, typically within the first few years of construction. While distinct from subsidence, heave, or landslip, all ground movement types show visible signs. These include cracks in walls (often diagonal, wider at the top for subsidence, or wider at the bottom for heave), sticking doors and windows, rippling wallpaper, or cracks that open and close seasonally.

Standard Home Insurance Coverage for Ground Movement

Standard homeowners insurance policies protect the dwelling and other structures against various perils. Many policies contain an “earth movement” exclusion, broadly excluding damage from events like earthquakes, landslides, and sinkholes. This means general shifting of the earth is not typically covered. However, specific coverage for subsidence and related issues varies. Some policies may offer limited protection if the damage is sudden and accidental, rather than a result of gradual settling or normal structural movement.

Standard homeowners policies generally do not cover specific risks like mine subsidence, requiring separate policies or endorsements. These are important for properties in historical mining regions, where ground collapse risk is higher. Homeowners must meticulously review policy documents to understand the precise terms, conditions, and specific perils covered or excluded regarding ground movement.

Common Exclusions in Ground Movement Coverage

While some ground movement damage may be covered, many situations are typically excluded. Standard policies generally do not cover gradual settlement or normal structural movement, as these are considered part of a building’s natural aging or wear and tear. Damage from poor design, faulty workmanship, or lack of maintenance is also commonly excluded. For example, unrepaired leaky drains causing soil erosion and subsidence might not be covered due to the underlying maintenance issue.

Policies also exclude damage from coastal or river erosion, or rising damp. These are often viewed as environmental processes or long-term issues homeowners are expected to mitigate. Damage from mining operations is frequently excluded unless explicitly covered by a separate mine subsidence policy or state-mandated program.

Damage to external structures like boundary walls, sheds, or driveways may not be covered unless the main dwelling is affected and the policy explicitly includes these ancillary structures. Pre-existing damage is also universally excluded, as insurance covers new, unforeseen losses. Insurers exclude these damages as they are foreseeable, preventable through proper maintenance, or part of normal property degradation.

Making a Claim for Ground Movement Damage

If ground movement damage is suspected, taking systematic steps is important for a successful insurance claim. First, thoroughly document the damage with clear photographs and videos, noting dates and progression. It is also advisable to take reasonable steps to prevent further damage, if safe, such as temporarily covering a broken window, while avoiding permanent repairs until the insurer provides guidance. Gather all policy documents, as they contain critical information about coverage and the claims process.

Promptly notify the insurance company about the suspected damage, as policies often require timely reporting. The insurer will send a loss adjuster or surveyor to assess the damage. The adjuster will investigate the cause and extent of the damage to determine if it is covered under the policy terms. Homeowners should cooperate fully with these investigations, providing all requested information and allowing access for inspections.

The claims process for ground movement can be lengthy, sometimes requiring monitoring over several seasons to understand the movement’s nature and determine long-term solutions. If a claim is denied, homeowners have options for recourse. First, appeal the decision directly with the insurance company, providing additional evidence or clarification. If the appeal is unsuccessful, filing a complaint with the state’s department of insurance or an independent ombudsman’s office can provide further review and potential mediation. These bodies investigate whether the insurer handled the claim properly and impartially.