Earth Movement (landslide) Insurance: What You Need to Know

Earth movement, also known as earth movement peril, is a term that refers to any natural or man-made event that causes the ground to shift, sink, rise, expand, or contract. Examples of earth movement include earthquakes, landslides, mudslides, sinkholes, erosion, subsidence, and volcanic eruptions. Earth movement can cause significant damage to buildings, structures, and personal property, as well as pose a threat to human safety.

However, most standard homeowners insurance policies do not cover earth movement, unless it is caused by a fire or explosion. This means that if your home is damaged by an earthquake, a landslide, or any other form of earth movement, you will have to pay for the repairs or replacement out of your own pocket, unless you have a specific earth movement insurance policy or endorsement.

What is Earth Movement Insurance?

Earth movement insurance is a type of coverage that protects your home and personal property from damage caused by earth movement. Depending on the policy, it may also cover additional living expenses, debris removal, and loss of use. Earth movement insurance is usually sold as a separate policy or as an endorsement to your existing homeowners insurance policy. Some common types of earth movement insurance are:

• Earthquake insurance: This covers damage caused by the shaking and cracking of the earth due to seismic activity. It may also cover damage from aftershocks, landslides, and tsunamis triggered by an earthquake.
• Landslide insurance: This covers damage caused by the movement of soil, rock, or debris down a slope due to gravity, water, or human activity. It may also cover damage from mudflows, which are rivers of liquid and flowing mud.
• Sinkhole insurance: This covers damage caused by the sudden collapse or sinking of the ground due to the erosion or dissolution of underground rock or soil. It may also cover damage from mine subsidence, which is the movement of the ground due to the collapse of old mines or tunnels.

Do You Need Earth Movement Insurance?

The need for earth movement insurance depends on several factors, such as:

• Where you live: Some areas are more prone to earth movement than others, due to their geographic location, geologic features, climate, and history of natural disasters. For example, if you live in California, you are more likely to experience an earthquake than if you live in Florida. However, earth movement can happen anywhere, so it is important to check your local risk and history of earth movement events.
• What your homeowners insurance covers: Most homeowners insurance policies exclude earth movement, but some may offer limited coverage for certain types of earth movement, such as fire or explosion. You should review your policy carefully and understand what is covered and what is not. You should also check if your policy has a separate deductible for earth movement, which is usually higher than the regular deductible.
• How much your home and belongings are worth: The cost of repairing or replacing your home and personal property after an earth movement event can be very high, especially if the damage is extensive or widespread. You should consider how much you can afford to pay out of your own pocket, and how much you are willing to risk losing. You should also factor in the value of your home and belongings, as well as the sentimental value of your family heirlooms, photos, and other items.

How Much Does Earth Movement Insurance Cost?

The cost of earth movement insurance varies depending on several factors, such as:

• The type of coverage: Different types of earth movement insurance have different rates and benefits. For example, earthquake insurance is usually more expensive than landslide insurance, but it may also offer more comprehensive coverage. You should compare the costs and benefits of different types of earth movement insurance and choose the one that best suits your needs and budget.
• The amount of coverage: The more coverage you want, the more you will have to pay. You should decide how much coverage you need based on the value of your home and personal property, as well as the potential cost of repairs or replacement. You should also consider the deductible, which is the amount you have to pay before the insurance kicks in. A higher deductible means a lower premium, but also a higher out-of-pocket expense.
• The location of your home: The location of your home affects the likelihood and severity of earth movement events, as well as the cost of construction and labor in your area. The more prone your area is to earth movement, the more expensive your earth movement insurance will be. You should check the earthquake, landslide, and sinkhole risk maps of your area and see how they affect your insurance rates.
• The features of your home: The features of your home affect how vulnerable it is to earth movement damage, as well as how much it would cost to repair or rebuild. Some features that may increase your earth movement insurance cost are:
  • The age and condition of your home: Older and poorly maintained homes are more likely to sustain damage from earth movement than newer and well-maintained homes.
  • The type and quality of your foundation: Homes with concrete slab foundations are more resistant to earth movement than homes with raised foundations, crawl spaces, or basements.
  • The size and design of your home: Larger and more complex homes are more expensive to repair or rebuild than smaller and simpler homes.
  • The materials and construction of your home: Homes made of wood, brick, or stone are more susceptible to earth movement damage than homes made of steel, concrete, or reinforced materials.

How to Buy Earth Movement Insurance?

If you decide to buy earth movement insurance, you should follow these steps:

• Shop around: You should compare the rates and benefits of different earth movement insurance providers and policies. You can use online tools, such as EINSURANCE, to get free quotes and find discounts for earth movement insurance. You can also ask for recommendations from your friends, family, or neighbors who have earth movement insurance.
• Read the fine print: You should read the policy documents carefully and understand the terms and conditions of your earth movement insurance. You should pay attention to the coverage limits, exclusions, deductibles, waiting periods, and claim procedures. You should also ask questions and clarify any doubts or concerns you have with your insurance agent or company.
• Review your policy regularly: You should review your earth movement insurance policy at least once a year and update it as needed. You should check if your coverage is adequate and matches the current value of your home and personal property. You should also check if your policy reflects any changes in your area, such as new construction, zoning, or risk factors. You should also shop around and see if you can find a better deal or a more suitable policy.

Earth Movement Insurance Example

To illustrate how earth movement insurance works, let us consider an example. Suppose you own a home in California that is worth $500,000 and has a standard homeowners insurance policy with a $1,000 deductible. Your policy does not cover earth movement, so you decide to buy an earthquake insurance policy with a 10% deductible and a $500,000 limit of liability. You pay $1,200 per year for your earthquake insurance policy.

One day, a major earthquake strikes your area and causes severe damage to your home. The cost of repairing your home is estimated at $300,000. Here is how your insurance will cover your loss:

• Your homeowners insurance policy will not cover any damage caused by the earthquake, since it is excluded from your policy.
• Your earthquake insurance policy will cover the damage caused by the earthquake, up to your limit of liability. However, you will have to pay a deductible of 10% of your home’s value, which is $50,000. The remaining $250,000 will be paid by your earthquake insurance policy.
• Your total out-of-pocket expense will be $51,000, which is the sum of your homeowners insurance deductible ($1,000) and your earthquake insurance deductible ($50,000).
• Your total insurance payout will be $250,000, which is the difference between the cost of repairing your home ($300,000) and your earthquake insurance deductible ($50,000).

Earth Movement Insurance Table

The following table summarizes the main features of different types of earth movement insurance:

Brian

Passionate about finance news and updates, I’m your go-to guide through the twists and turns of the financial world. With a knack for breaking down complex topics into bite-sized insights, I’m here to make finance accessible and exciting for you.