Landslide on Whidbey Island a reminder that earth movement is excluded from home, business insurance

Last week's landslide on Whidbey Island that damaged one home and threatened or isolated more than 30 others, NW Insurance Council reminds homeowners and business owners that standard Homeowners and Business Insurance policies specifically exclude damage caused by earth movement such as a landslide.

Special coverage for landslides is available for an additional cost. As with all of your insurance policies, understanding what is and is not covered is a key first step toward protecting your property before a disaster strikes. 

Photo courtesy of Washington State Department of Natural Resources - some rights reserved

This very unfortunate situation really highlights the need for special insurance if you own property above or below a steep slope.  Property owners in high-risk areas need special coverage that is not included in a standard home or business insurance policy.  The good news is that coverage is available through specialty carriers at an additional cost.

Homeowners can purchase a Difference in Conditions policy through a surplus-lines carrier as a stand-alone policy.

A Difference in Conditions policy includes coverage for landslide, mudflow, earthquake and flood.  Depending on risk factors, such as the slope of your property or proximity to a cliff, a homeowner with a $300,000 house can expect to pay $1,000 or more per year for this coverage.

If you live in a high-risk area, there are several things you can do to protect yourself from landslides.  NW Insurance Council offers the following tips:

• Create a family evacuation plan.
• Learn and recognize early landslide warning signs such as: doors or windows that stick or jam, new cracks in plaster, tile, bricks or foundations, broken underground utility lines and bulging ground at the base of a slope.
• Build retaining walls and install flexible pipe fitting to avoid gas or water leaks.
• Maintain a complete inventory of all your possessions, including photographs, receipts and serial numbers.  NW Insurance Council offers free downloadable Home Inventory Software from the Insurance Information Institute. 
• Damage to vehicles caused by landslide is covered if the owner has chosen optional Comprehensive Coverage in the auto policy. 
• Personal contents inside a vehicle that are damaged by a landslide are covered under standard Homeowners or Renters insurance. 
• If you aren’t sure what’s covered or have questions regarding your policy, contact your agent or insurance company.

Spring home maintenance can prevent damage your insurance won’t cover

Homeowners Insurance is designed to protect you from sudden and accidental losses such as fire, windstorm, theft or a broken water pipe. It’s not intended to cover maintenance-related issues such as water damage from a leaky roof or a cracked foundation.  Each homeowner is responsible for conducting regular preventive maintenance.

• Check and clean gutters to prevent water from backing up into your attic.
• Check the roof.  Look for worn, curled or missing shingles and replace them.
• Repair loose or damaged siding.
• Examine soffit boards (horizontal surfaces under eaves).
• Make sure downspouts slope away from the home and carry water at least five feet from the foundation walls.
• Have a professional inspect your air conditioning system.
• Make sure sprinkler heads are directed away from the house to prevent water build-up near foundation walls.
• Remove clutter from storage areas to reduce fire hazards.
• Examine decks, porches and balconies for weak or broken railings and posts.  Railings should be spaced no more than four inches apart to prevent children from slipping through.
• Caulk and reseal window and door flashing, seals or weather stripping.
• Check the attic for moisture and surface discoloration.
• Check fire extinguishers in your kitchen and garage to make sure they are full and work properly.
• Install special outlets equipped with ground-fault circuit interrupters when outdoor electrical outlets are located near water sources.
• Be sure exterior walls are well painted and sealed.
• Inspect your lawn for rocks or other objects that could be launched from your lawnmower and injure others or damage property.
• Contact your insurance company or agent to review your Homeowners policy to be sure you have the coverage you want and need.

To order a free copy of our Maintenance Guide for Your Home, call NW Insurance Council at (800) 664-4942.  For more information about insurance, visit www.nwinsurance.org.