If you mention earth movement in places like California, people instantly think of earthquakes. While this is a common form of earth movement, it is not the only one geologically possible. Unfortunately, most homeowners' insurance policies specifically exclude earthquakes and other earth movements as perils that could lead to claims for coverage.
You may, however, be able to separately purchase insurance to protect against the financial impact of such events.
Earth movement is a broad category that includes pretty much any situation where earth or dirt might move, due to for instance to its shifting, sinking, rising, expanding, or contracting, including being borne by water. For example, this would include earthquakes, volcanic eruptions, landslides, sinkholes, mudslides, erosion, and shock waves. And there's a related exclusion for settling of your home's foundation.
Even if you have separate flood insurance, it might contain an exclusion for earth movement. That means that, after a major disaster, you could find yourself arguing with your insurance carrier about whether your house was damaged by water that happened to be dirty or dirt that had been moved by water.
The causes of the damage could be either natural disasters or due to a man-made source; for example if your home builders didn't property choose a site or compact the soil before beginning construction.
For a price, it is often possible to tack on coverage ("riders") to your basic insurance policy covering at least some forms of earth movement or earthquakes. In California, where the risk of earthquakes is particularly high, the state sells separate earthquake insurance.
Read the fine print carefully. It might be, for instance, that your house is covered only for earthquakes, and possibly only for what amounts to total destruction as opposed to limited damage.
Several factors will go into calculating your added premiums, including your home's location, history of earth movements in the area, and type of construction. If you live on a cliff, you will find it difficult to find landslide insurance or to find it at an affordable rate. The same thing might be true if your house is built on or near an active fault line or within the vicinity of a volcano.
The important thing to do is assess the risks you are facing and discuss with your insurance agent the best solutions to your insurance needs. Additionally, you can hire an attorney to help you cut through the difficult wording of the insurance policies and select what you need; and later defend your rights, if need be.
