Are Landslides Covered by Home Insurance?

When we think of natural disasters, we usually think of windstorms, floods, earthquakes, and wildfires. According to Geology.com, landslides cause $3.5 billion in property damage and kill 25 to 50 people in the United States each year.

Many landslide victims believe their homeowner's insurance policies cover them, but this is not always the case. According to the Washington Office of the Insurance Commissioner, typical homeowner's insurance policies do not cover landslides or land movement caused by rain runoff, snow melt, flooding, or earthquakes.

Understanding how your insurance works is the first step toward protecting your property before a landslide or other natural disaster occurs.

What to consider

You don't need landslide insurance if your house is on flat land. If you live above or below a steep slope, you should think about buying it. Insuring for landslides is also a good idea if you live in an area prone to heavy rain or snow, according to Karl Newman, president of the nonprofit NW Insurance Council. However, keep in mind that some insurers may refuse to insure you if you live on a hill.

After applying for this specialized insurance, ask if there is a waiting period, which is usually 15 days, says Teresa Ponder, an attorney at the California law firm Berger Kahn.

What are my options for Landslide Insurance Coverage?

  1. Content Coverage for Landslide Damage.

You can purchase a special rider, or add-on, to your homeowner policy that covers the contents of your home in the event of any disaster, including earth movement. This rider only applies to the contents, not the structure. "Some insurance companies may not offer this option," says the Washington insurance commissioner, "so you may need to shop around."

  1. Earth Movement Coverage for Landslide Damage

In the event of a landslide or other earth movement, this coverage pays for damage to structures such as your house or any unattached buildings on your property. Your insurance agent or broker might be able to obtain this coverage in the "surplus lines" market. According to the Washington insurance regulator, surplus lines providers "insure risks that the industry traditionally does not insure."

Ponder warns that landslide policies can expire without notice, so stay on top of things to avoid being left without coverage.

Remember that landslides occur in all 50 states.

What is Landslide Insurance Called?

Landslide insurance is officially known as "Difference in Conditions," and it also covers earthquakes and floods. According to Newman, this type of coverage would likely cost $1,000 or more per year for a $300,000 home.

A standard homeowner's policy, by the way, will cover your personal belongings if they are in your car and are damaged during a mudslide. The comprehensive portion of your auto insurance policy covers damage to the vehicle itself. Comprehensive coverage is optional, but most auto lenders require it.

Protecting you and your family

Even if you have insurance, you should do everything you can to avoid property damage and injury in the first place. The Northwest Insurance Council suggests the following:

  • Create a family evacuation plan.
  • Keep an emergency kit handy.
  • Recognize early warning signs of a landslide, such as stuck doors or windows, cracks in plaster, or bulging ground at the bottom of a slope.
  • Construct retaining walls as needed.
  • Keep an inventory of your household belongings