What Homeowners Need to Know About Landslide Insurance Coverage

When purchasing a home insurance policy, many homeowners assume their home is covered in the event of any natural disaster. Unfortunately, standard home insurance policies do not cover a wide range of disasters, including landslides. Use the Douglas Residential Cost Guide to accurately estimate the replacement cost of your home, ensuring you’re getting a fair rate on landslide insurance.

Does Homeowner’s Insurance Cover Landslides?

Not every natural disaster is covered through a standard policy. Property owners are generally insured for damage or devastation due to wildfires, theft, vandalism, tree falls, and severe weather storms.

A typical home insurance plan does not cover landslides, earthquakes, floods, tsunamis, or nuclear disasters. To ensure that you’re covered in case of a loss, it’s important to find out what your insurance covers before your property is damaged by a natural disaster, particularly if you live in an area where certain disasters are more common.

Earth Movement Insurance Definition

A landslide is defined as “earth movement” in insurance policies and refers to any disaster primarily caused by the movement of earth or debris. Landslides can be slow (moving only a few centimetres a year), or they can be sudden and involve rapidly falling debris. Both types of landslides can severely damage and even destroy your home, costing you hundreds of thousands of dollars.

Several risk factors increase the likelihood of landslides, including earthquakes, deforestation, excavation, irrigation, and climate change. If your area is directly affected by any of these risks, it might be time to consider purchasing landslide insurance to protect your home and property.

How Much Does Landslide Insurance Cost?

To cover landslides, you will likely need a Difference in Coverage (DIC) policy, sometimes known as gap coverage. A DIC is a separate policy that specifically covers perils and damages not covered under a typical homeowner’s insurance policy. These policies are an additional cost on top of your existing insurance policy.

A second option may involve comprehensive coverage, which refers to a home insurance policy that pays out on any conceivable kind of loss. Be sure to find out if landslides are covered, as even some comprehensive plans exclude them.

Comprehensive coverage policies cost more than a standard homeowner’s insurance plan, but if you’re concerned about landslides or other disasters not covered under a standard policy, the extra cost may be worth it to ensure your home and property will be replaced in the event of a loss.

Is Landslide Covered by Flood Insurance?

No, because landslides are defined as “movements of the earth.” However, mudflows (which are more water than mud or earth) may be covered by flood insurance.

Secure an Accurate Replacement Cost Estimate in Your Policy

Douglas Residential Cost Guide is your one-stop shop for accurate replacement cost estimates for your home, using only the latest industry data. Our guide is trusted and used by insurance professionals. Book a free consultation today to ensure you’re getting a fair rate and the coverage you deserve!