Is Earth Movement Covered by Homeowners Insurance?

Defining Earth Movement in Insurance

Homeowners insurance protects against unforeseen damages to a dwelling and its contents, helping to restore property after an unexpected event. Understanding the scope of this protection, including what is covered and what is not, forms the foundation of responsible homeownership.

From an insurance perspective, “earth movement” is a comprehensive term for ground-related disturbances. This broad classification helps insurers define coverage or exclusion within a policy, encompassing natural phenomena that cause the earth to shift, settle, or erode. The definition focuses on the direct impact these events have on insured property, allowing consistent rules for damages from ground instability.

Standard Homeowners Policy Coverage Limitations

Standard homeowners insurance policies generally do not cover damage directly caused by earth movement. This exclusion stems from the catastrophic nature of these events, which can affect large geographic areas simultaneously and present an unmanageable risk for standard insurance models.

While direct damage from earth movement is excluded, some indirect scenarios might have coverage. For instance, if an earthquake causes a fire, the fire damage might be covered as fire is a typical peril. However, structural damage directly from ground shaking remains excluded. This separates the direct cause of earth movement from subsequent damages caused by a covered peril.

Common Exclusions for Earth Movement

Standard homeowners insurance policies explicitly exclude various types of earth movement. Earthquakes, involving sudden shifts in the earth’s crust, are almost universally excluded. The resulting tremors and ground displacement can cause significant structural damage.

Landslides and mudslides, referring to the downward movement of rock, soil, or debris, are also common exclusions. These events can engulf properties or sweep them away, and the damage is generally not covered by a basic policy. Similarly, subsidence, the gradual caving in or sinking of land, is another standard exclusion.

Sinkholes, depressions caused by the collapse of the surface layer, are frequently excluded. These can form suddenly and cause severe structural damage. Policy language for these exclusions is broad, reinforcing that damage directly from these phenomena is not protected under a standard homeowners policy.

Specialized Coverage Options

Given widespread exclusions for earth movement in standard policies, homeowners often seek specialized coverage. Earthquake insurance is a separate policy or endorsement added to a standard homeowners policy, designed to cover damage from seismic activity. These policies often feature higher deductibles, frequently structured as a percentage of the dwelling’s coverage limit, ranging from 10% to 25%.

Coverage for sinkholes is typically available as an endorsement or separate policy, especially in regions prone to such formations. This coverage addresses damage from the sudden collapse of the ground due to subterranean voids. Availability and specifics of sinkhole coverage vary significantly by insurer and geographic location.

While distinct from earth movement, mudflows (a river of liquid mud) are often covered under flood insurance policies, not standard homeowners policies. Flood insurance, administered by the National Flood Insurance Program (NFIP) or private insurers, protects against damage from various flooding events, including these mudflows. Obtaining specialized coverages involves contacting the current insurer or seeking providers specializing in these unique risks. Review policy documents for specific perils, deductibles, coverage limits, and potential waiting periods, which can range from 0 to 30 days for flood insurance.

Citations

1. “Earthquake Insurance: What It Is and How It Works”. Forbes. [https://www.forbes.com/advisor/homeowners-insurance/earthquake-insurance/](https://www.Forbes.com/advisor/homeowners-insurance/earthquake-insurance/)
2. “How long does it take for flood insurance to go into effect?”. Federal Emergency Management Agency. [https://www.fema.gov/flood-insurance/nfip/wait-period](https://www.fema.gov/flood-insurance/nfip/wait-period)
3. “Flood insurance: What it is and what it covers”. Insurance Information Institute. [https://www.iii.org/article/what-is-flood-insurance](https://www.iii.org/article/what-is-flood-insurance)