Discover how earth movement insurance protects your property from landslides, sinkholes, and other ground disasters. Learn what’s covered, what’s not, and why standard homeowners policies exclude these risks. I will never forget the call from my client whose hillside home had literally begun to slide down the mountain. The cracks in his foundation were widening daily, and the deck was pulling away from the house in a slow, terrifying dance of destruction. He was certain his homeowners’ insurance would cover this catastrophic damage. The devastating truth, which I had to deliver, was that it would not. His policy, like nearly all standard homeowners’ policies, contained a universal exclusion for earth movement. In that moment of his stunned silence, I understood that most people assume the ground beneath their home is permanently stable and insured. Earth movement insurance exists precisely for those who cannot afford to make that assumption.

Earth movement is a broad term that encompasses several specific perils, each with its own destructive potential. A landslide involves the downward movement of soil and rock, often triggered by saturation from heavy rains or seismic activity. A sinkhole forms when underground erosion creates a cavity that suddenly collapses, swallowing whatever sits above it. Mine subsidence occurs when abandoned underground mines collapse, causing the ground above to sink. Even slow, gradual events like soil settlement that damages a foundation qualifies as earth movement. What unites these events is their exclusion from standard property insurance. Insurance companies view earth movement as a catastrophic, geographically concentrated risk that is difficult to price for the average homeowner. This creates a critical protection gap that can only be filled with a specialized earth movement policy.

The coverage provided by these specialized policies is typically narrow and specific. It is not a comprehensive policy for your home, but a targeted shield against a single category of threat. A standalone earth movement policy will generally provide coverage for the repair or rebuilding of your home if it is damaged by a covered event like a landslide or sinkhole. It may also cover other structures on your property, such as a detached garage or shed. Some policies extend to the cost of stabilizing the land itself to prevent further damage, a notoriously expensive engineering challenge. Crucially, this coverage often applies even if the movement is gradual, as long as it is first discovered during the policy period and reported promptly. This is vital because many earth movements happen slowly over months or years, not in a single dramatic event.

Whether you need this specialized coverage depends almost entirely on two factors: your location and your property’s characteristics. If you live on or at the base of a steep slope, in a region with clay-rich soils that expand and contract, or in an area with a history of mining or natural sinkholes, this insurance is not just wise, it is essential. Lenders in high-risk areas may even require it as a condition for a mortgage. The cost of the policy is directly tied to this risk level. A homeowner in a flat, geologically stable region will pay very little, while someone building on a coastal cliff may find it a significant expense. However, that expense must be weighed against the alternative. The cost to stabilize land and rebuild a home after a major slide can easily reach hundreds of thousands of dollars, a financial burden that would be devastating to most families without insurance.

Securing earth movement insurance requires a different mindset than buying a standard policy. The application process is more involved, often requiring a geological assessment of your property. The insurer needs to understand the stability of the slope, the composition of the soil, and the history of the land. This is not a policy you can buy at the last minute when a storm is forecast. It is a long term risk management strategy. You are essentially betting that the ground will remain stable, while the insurer calculates the probability that it will not. For homeowners in vulnerable areas, it is a bet worth making. It provides the profound peace of mind that comes from knowing that one of the most fundamental elements of your property—the very land it sits upon—is financially protected. It is the assurance that if the unthinkable happens and the ground itself betrays you, you will not have to face the aftermath alone.

References:

Insurance Information Institute. (2004). Preparing for an earthquake. https://www.iii.org/article/preparing-for-an-earthquake

Hippo. (2024). Guide to earthquake insurance. https://www.hippo.com/insurance/earthquake-insurance/

California Department of Insurance. (2024). Earthquake insurance. https://www.insurance.ca.gov/01-consumers/110-home/10-earthquake-insurance/index.cfm

HDFC ERGO. (2023). Insure your home against earthquake damage. https://www.hdfcergo.com/home-insurance/earthquake-insurance