Insurance for landslides and mudflow (2024)

FAQs

Is there such a thing as landslide insurance? ›

A landslide is considered an “earth movement” event so, like an earthquake, it is excluded from standard homeowners and business insurance policies. However, you can buy what's known as a “Difference in Conditions” policy (which typically offers all-in-one coverage for landslides, mudflows, earthquakes, and floods).

As mudflow is a type of flood event the SFIP insures against, policyholders can start a claim to repair or replace covered property damaged by mudflow. Immediately following a flood loss, you should contact your insurance agent or company.

FEMA uses the words mudslide and mudflow interchangeably. It's an event where there is actually a river of liquid mud flowing down a hillside, usually because of a loss of brush cover (typically from a fire) and subsequent heavy rains. Damage from those events is covered by your National Flood Insurance Program policy.

Homeowners insurance does not cover landslides and mudslides, nor will they be covered by flood or earthquake insurance.

If the buyer is not informed of landslide or other potentially harmful conditions, the seller may be monetarily liable for real property damage (including post-purchase improvements).

Homeowners insurance will usually cover damage to the dwelling and personal property. A resulting explosion or fire should also be covered. Earth movement, landslide, tremors, mudslide or earthquake caused by a volcano is not usually covered under homeowners insurance.

Landslides, mudslides and mudflow are considered different perils and require different insurance—separate from a homeowners or business policy. Landslides and mudslides are primarily earth movement, while a mudflow is caused by water picking up soil and turning into mud.

An NFIP policy covers mudflow if it meets the general definition of flooding under the standard flood insurance policy. Mudflow is defined separately as "a river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water.”

What does Earth Movement insurance cover? Earth Movement coverage helps protect your properties from damage caused by an earthquake, a sudden and violent shaking of the ground resulting from movement of the earth's crust.

A runoff provision works by covering a period after a policy has ended, during which liability claims may still be reported for incidents that occurred during the policy's effective dates. It is commonly used when one company is being acquired by or merged with another.

How does FEMA define mudflow? ›

A river of liquid and flowing mud on the surfaces of normally dry land areas, as when earth is carried by a current of water.

New cracks appear in plaster, tile, brick or foundations. Outside walls, walks or stairs begin pulling away from the building. Slowly developing, widening cracks appear on the ground or on paved areas. Underground utility lines break.

It's free, simple and secure. If your home is damaged by a landslide or mudslide, standard homeowners insurance would not cover the cost of repairs. Landslides and mudslides are considered "movements of the Earth," which are explicitly excluded from coverage.

Homeowners insurance doesn't cover floods, earthquakes, typical wear and tear, and damage due to insufficient maintenance. You can usually add flood and earthquake coverage to your policy for an additional fee, but wear and tear and damage from a lack of maintenance are considered preventable.

And because earth movement is listed in that special form, along with other items like earthquakes, sinkholes and landslides, you won't typically find coverage there. Not all insurance companies offer land stabilization coverage. When water causes the movement, you typically won't have coverage.

Difference in conditions (DIC) insurance is a type of policy that provides expanded coverage for some perils not covered by standard insurance policies. DIC insurance is designed to fill in gaps in insurance coverage and is most frequently used by larger organizations, looking for protection from catastrophic perils.

Even a small landslide that damages a few homes can cost millions of dollars. Losses from landslides in the United States were estimated in 1980 to exceed $1 billion per year. More recently, the U.S. Geological Survey estimated annual losses to be between $2 billion and $4 billion per year.

Slide is a technology-enabled insurance company based out of Tampa, FL. The company was founded in 2021 by Bruce Lucas, an insurance insider with a deep understanding of how technology can be applied to achieve better outcomes for both consumers and the business.

Homeowners, renters, and condominium insurance policies do not cover damage from natural disasters such as earthquakes, floods, and landslides. Earthquake insurance can help pay for some of your losses.