Does Home Insurance Cover Landslides and Mudslides?
Standard homeowners insurance would not cover the cost of repairs if your home was damaged by a landslide or mudslide. Landslides and mudslides are classified as "movements of the Earth" and are expressly excluded from coverage. You will need difference in conditions (DIC) coverage to protect your home from landslides and mudslides.
When does homeowners insurance cover landslides and mudslides?
Unfortunately, landslides, mudslides, and mudflows are never covered by homeowners insurance. Every policy contains explicit language stating that any damage caused by Earth movement is not covered. Mudflows, which are more liquid than slides, are not covered because they are excluded by the same provision that excludes floods.
Landslides are difficult for insurance companies to insure due to their rarity and the extensive damage they typically cause. To protect your home from landslides and mudslides, you'll need a DIC policy, also known as "gap coverage," because it covers all the risks that a standard residential or commercial property insurance policy does not. Floods, earthquakes, and, of course, landslides and mudslides can all be covered by DIC policies.
Where do you buy a difference in coverage (DIC) policy?
A DIC policy is not available from every company. You should contact your insurance agent to learn more about who sells DIC policies in your state. They will be able to tell you whether your company provides it or recommend others that do. If they are unsure, we recommend contacting your state's Department of Insurance. The California Department of Insurance, for example, lists the following companies as providing DIC policies to California residents:
- Aegis General
- AIG
- Cincinnati Insurance
- Farmers
- Mid-Century
- Safeco
- State Farm General
- Unitrin
- General Insurance
How do you get insurance for landslides, mudslides and mudflows
The three disasters occur less frequently than floods or earthquakes, but those in high-risk areas may want to consider getting extra protection in case one occurs. The cost of damage to your home from a landslide or mudslide can be quite high.
Landslides and mudslides
Land and mudslides, despite being a movement of the Earth, are not covered by earthquake or flood insurance. A DIC policy would be required to protect your home from a landslide or mudslide.
DIC coverage is typically purchased as a separate policy — possibly from a different company — though some companies may offer it as an endorsement. A DIC policy can range in price from a few hundred dollars to a few thousand dollars per year, depending on what and how much you insure.
However, because landslides are so rare, occurring on average 20 to 30 times per year in the United States, it is debatable whether obtaining a DIC is necessary. There are only a few high-risk areas where adding DIC to your homeowners policy may be worthwhile. Landslides are most common in California, Colorado, Washington, North Carolina, and Oregon.
The only northeastern states on the list were New York and Pennsylvania, but they only accounted for six of the 617 NOAA-reported landslides between 1993 and 2011. In contrast, the five states listed above accounted for 244 of the 617 total (with another 200 in Puerto Rico alone). Mudslides are even rarer, with only 38 reported between 1993 and 2002. Mudslides occurred primarily in the same states that experienced landslides: Oregon, Washington, California, Idaho, and North Carolina.
Mudflows
Unlike a mudslide, a mudflow is more akin to a flood, with much more liquid and fluid dirt or movement. Mudslides are typically more solid. You would need flood insurance to be covered in the event of a mudslide. If you live in a mudslide-prone area, you're probably also in a flood-prone area, so you should already have flood insurance.
If you live in a flood zone but don't have flood insurance, we strongly advise you to get it. A single inch of flood water can cause up to $10,000 in damage to your home, and standard homeowners insurance will not cover it. You should get a flood insurance quote from your insurance agent. Your agent will be able to write you a policy if the company has a partnership with the National Flood Insurance Program.
Flood insurance premiums can range from $400 per year in low-risk areas to more than $13,000 per year in high-risk areas. We recommend getting quotes from multiple insurers to find the best flood insurance for your needs and in your area.