Is Landslide Covered by Homeowners Insurance?

Homeowners often wonder if their insurance policies cover natural events like landslides. Standard homeowners insurance covers many perils, but also contains specific exclusions for certain types of damage. Understanding these policy nuances is important for property owners to assess risks and consider appropriate coverage. This article will outline the typical limitations of standard policies regarding earth movement and discuss avenues for securing more comprehensive protection.

Standard Homeowners Policy Exclusions

Standard homeowners insurance policies typically contain explicit exclusions for damage caused by “earth movement.” This broad exclusion applies to various geological events, including landslides, mudslides, sinkholes, and earthquakes. The exclusion for earth movement covers any shifting, sinking, rising, expanding, or contracting of the earth, regardless of the trigger. This means that even if heavy rainfall contributes to a landslide, the resulting damage to a home would likely not be covered. The rationale behind these exclusions is the catastrophic potential and widespread damage earth movement events can cause, making them difficult for insurers to underwrite without significantly increasing premiums.

For insurance purposes, it is important to distinguish between a landslide and a mudflow. While both involve moving earth, a mudflow is defined as a river of liquid mud flowing down a hillside, often caused by heavy rains or rapid snowmelt. Damage from mudflows can sometimes be covered under a separate flood insurance policy. However, flood insurance does not cover landslides that are primarily the movement of rock or dry earth, as these are distinct geological events.

Securing Coverage for Earth Movement

Since standard homeowners policies exclude earth movement, property owners in landslide-prone areas may need additional coverage. One common method is to add an endorsement, or rider, to an existing homeowners policy. This endorsement extends coverage for specific perils like earth movement. Endorsements can be tailored to cover damage to the home’s structure, other detached buildings, and even personal property inside the home.

Another option for more extensive protection is a Difference in Conditions (DIC) policy. A DIC policy is a specialized, standalone product designed to bridge coverage gaps left by standard homeowners policies. These policies typically provide protection against catastrophic events like earthquakes, floods, and landslides, which are commonly excluded. DIC policies are highly customizable, offering flexibility in coverage scope through all-risk or named-perils options.

For instance, a DIC policy can cover debris removal, temporary relocation costs if the home becomes uninhabitable, and land stabilization expenses. While these policies offer crucial protection, their availability and cost can vary significantly based on the property’s geographic location and its specific risk factors, such as proximity to slopes or cliffs. Premiums can range from several hundred to several thousand dollars annually, with deductibles often 5% to 20% of the home’s replacement cost.

Filing a Landslide Claim

If a landslide occurs and a property owner has secured coverage through an endorsement or a DIC policy, initiating a claim promptly is important. First, ensure the safety of all occupants and contact emergency services if necessary. Once safe, thorough documentation of the damage is crucial.

Property owners should photograph and video all affected areas, including the home’s structure, personal belongings, and surrounding land. Detailed notes should accompany this visual evidence, describing the damage and date of loss. Locating policy documents for the earth movement endorsement or DIC policy is essential, as they contain insurer contact information and coverage details.

Next, contact the insurance provider as soon as possible to report the damage and initiate the claim. Provide the policy number, date of the landslide, and an initial description of the damage. The insurance company will assign an adjuster to assess the property and determine the loss. Cooperation with the adjuster during their assessment is vital, and property owners should keep meticulous records of all communications, expenses incurred, and any additional damage that becomes apparent.