Landslide Insurance For Your Home or Business!
Fact, Home insurance policies do not cover damage from landslides and earth movement. It's not a peril that is covered by any standard homeowners policy that is sold in Oregon, Washington or anywhere else. Your homeowners policy doesn't cover flood or Earthquake unless you add an endorsement or purchase a standalone policy. Landslide insurance might be costly. But it depends on what you consider costly when you own a $500,000 + home and having landslide insurance will be your only chance of recovery against the uncertainty of damage or destruction as a result of a landslide. The type of policy that provides insurance protection against a loss due to landslide is called a 'Difference in Conditions' policy or a 'Natural Catastrophe' insurance policy.
At T.W. Morgan Insurance Services, we offer this type of insurance policy which provides protection against a loss due to earthquake, flood, and of course landslide. A Natural Catastrophe policy covers the three types of losses that your homeowners policy excludes.
Here are the definitions of the three types of loss:
- Earthquake Shock: means earth movement due to natural, seismic disturbance, caused by a sudden movement of the earth's crust, and including as a direct and immediate result of Earthquake Shock, landslide, mudflow, earth sinking, earth rising, or earth shifting.
- Flood: means a general and temporary condition of partial or complete inundation of normally dry land areas above the surface of the ground, caused by the overflow of a body of water including rivers, streams or lakes, waves, tidal water, surface water or spray from any of these, whether or not driven by wind. Water rising from the outside of your home and enters inside.
- Landslide: means the natural and sudden fall, slipping or displacement of earth or rock, including mudflow and land collapse other than that arising out of Earthquake shock.
The deductible for this type of insurance policy works as a percentage rather than a dollar amount for earthquake. For example, when rebuilding your home after a landslide, earthquake, or flood you would be responsible for a percentage of the insured value or a fixed dollar amount stated in your policy depending on which cause of loss you experience. The percentage deductibles range from 5% to 20% of the insurance replacement cost of your home. If the insurance replacement cost of your home was $275,000 this would equate to $13,750 at 5% or $27,500 with a 10% deductible for earthquake. Deductibles for flood can be a fixed dollar amount or percentage and the same can be for landslide depending on the package you select or what your budget can afford. If you think FEMA will stop by and hand you a check, think again. The average FEMA benefit is less than $5,000 and if you get a loan, you have to pay it back with interest and don't forget the loan that you have on your bank who funded your first. The FEMA Individuals and Household Program (IHP) offers assistance for people who need to repair or replace their existing residence, affected possessions or temporary housing assistance because of flood damage. The maximum benefit for 2013 for the Boulder County, Colorado summer flood was $31,900 for flood damage.
Talk to your agent at T.W. Morgan Insurance Services for the options available for your home or business. We have a great product that will give you piece of mind if disaster strikes. Call 503-245-3345 or Toll Free 888-821-4717 to secure your coverage today.