Erosion Worries: Filing Claims & Understanding Home Insurance 

Erosion involves soil moving away from its accustomed position. Typically, it’s triggered by water, wind, or ice.[1] Almost any homeowner in the United States could deal with this problem at one time or another. 

Earth movement, including erosion, is not covered by a standard homeowners insurance plan.[2] If land starts shifting around due to an issue like a flood, earthquake, or extensive landscaping, don’t look to your standard policy for help. 

Buying a separate policy that protects you from hazards like earthquakes or floods could ensure that you’re protected from erosion problems. This chart makes different erosion coverage specifics clear:

	What forms of erosion are covered?	Who should consider this policy?
Standard policy	Only those triggered by covered perils	All homeowners
Flood insurance	Only those triggered by floods or heavy rainfall	People living in flood-prone areas (like Florida or California)
Earthquake insurance	Only those triggered by earthquakes	People living in earthquake-prone areas
DIC policies	Those listed within the policy (which homeowners can often customize)	People facing multiple erosion risks

Is Erosion Covered by Insurance? 

Insurance companies often consider erosion a form of “earth movement” that is excluded from policies.[3] If you read the fine print in paperwork issued by your insurance company, you may see that erosion is excluded by name. You may also see terms like earth movement, landslide, or mudflow. 

Erosion typically happens slowly. In North Carolina, for example, one area experiences erosion at a rate of 12 feet per year.[4] People in this community lost their homes when the ground simply moved away and gravity took over. 

In very rare situations, homeowners can fight their companies for erosion coverage. For example, your policy may help you to recover from a wildfire. The water used to put out the flames, and the loss of vegetation during the event, could cause erosion. A homeowner in this situation could cite “efficient proximate cause,” claiming the covered event caused the problem. This term typically refers to a situation in which multiple events may be responsible for the damage, but a covered event is the most prominent or likely cause.[5] 

Other Insurance Products to Consider 

While your standard homeowners policy may not provide erosion protection, other products might give you the peace of mind you need. 

Flood Insurance 

The National Flood Insurance Program (NFIP) is available for people living in areas that might be prone to rising water. A policy like this could protect you if a flood puts your home at risk or causes erosion that puts your home at risk. Coverage could both help you remove water and repair damage from erosion. 

NFIP policies come with limits.[6] The building coverage maximum is $250,000 for the building and $100,000 for the contents. Depending on the extent of the damage, this may not be enough to help you repair or replace your home. 

For example, a homeowner in Alaska lost her home due to an eroded riverbank after a storm. She believes there’s no way that this property can be made safe again.[7] While a policy might help her, it may not allow her to buy something else instead. 

Earthquake Insurance 

States like California, Washington, and Missouri have high earthquake risks, but few residents have dedicated insurance plans that protect them.[8] An earthquake policy can protect you from damage that shaking ground can cause, including erosion. 

Two types of policies exist:[8]

1. Traditional earthquake insurance plans reimburse you for the specific amount detailed within your plan, which you can set when you sign up. 
2. Parametric insurance policies are more strict, and they only pay when the earthquake meets or exceeds a specific shake intensity. 

Difference in Conditions (DIC) Policies 

A difference in conditions (DIC) policy offers all-in-one coverage for a variety of problems, including landslides, earthquakes, and flooding.[3] Because all of these issues can cause erosion, a DIC plan offers the most significant level of protection. Lisa Koosis, a former claims specialist, notes, “Although DIC policies are often used by businesses, homeowners in high-risk areas may benefit from them because they’re customizable to the perils your home is at risk for.”

Policies like this tend to be expensive, as they protect the average home against so many types of disasters. But they can also give you the peace of mind you might need if you know your home is at risk for erosion problems. It’ll take a cost-benefit analysis of risk to determine if it’s a wise investment for you.

How to File an Erosion Claim

Before you file a claim for erosion under your standard homeowners insurance policy, read the fine print. If earth movement is specifically excluded and you don’t have another form of insurance, don’t file a claim. 

Insurance companies keep records detailing their claims. Each time you try to use your policy benefits, whether or not the claim is successful, that data is recorded. File too often, and you could struggle to get insurance in the future.

If you do have relevant supplemental insurance, follow these steps to file a claim:

• Document the damage with photos or video (ideally multiple forms of each).
• Make minor repairs (like taping up broken windows) to prevent more damage. 
• Contact your insurance agent and explain you’d like to file a claim. 
• Allow an insurance adjuster to visit your home and inspect the damage. 
• Review the adjuster’s proposed settlement. 
• Negotiate for the right payment.

Insurance companies are required to double-check your damage. It might be frustrating to answer questions and deal with in-person visits. Remember that the insurance company is trying to prevent fraudulent claims. Arguing with them or blocking access could mean an automatic denial.

If you disagree with the adjuster’s settlement, start with your insurance agent. Explain your point of view, preferably with appropriate videos and documentation. Lisa Koosis, a former claims specialist, says, “You’re entitled to hire an independent adjuster if you need help with negotiations. These third-party professionals can assess the damage and communicate directly with your insurance company to save you some of the hassle.” If you’re still unhappy, you can hire a lawyer to help, but know this will extend the time between the event and your payment, and attorney fees can add up quickly.

Can You Prevent Erosion?

Earth moves for many reasons, and the triggers can shift from one location to the next. If you think your home is at risk of erosion, hire a geologist to visit your home, conduct testing, and identify your risks. That assessment can help you determine what you should do next. 

FEMA suggests keeping any loose ground heavily planted.[9] Deep roots can keep soil in place, even if it gets wet. Building barriers and seawalls can also help to keep water away from your home if you live near a body of water, so your erosion risks are reduced. 

Keep erosion in mind when you’re performing any kind of landscaping.[1] When trees are removed or grasses are churned away, the soil becomes vulnerable to shifting and swaying.[10] Keeping your plants in place is a smart strategy. 

Keep Your Investment From Eroding 

Soil exposed to wind, rain, and floodwaters can slide away, taking your home with it. While standard homeowners insurance policies won’t protect you, a supplemental policy might give you the peace of mind you need. Assess your risks, and talk with your insurance agent about whether another product is right for you.