Jeffrey Wade
Whether homeowners' insurance covers a stone breakwall that has been washed away depends on the insurance policy and the cause of the wall's collapse. Many insurance policies contain an earth movement exclusion, which includes earthquakes, sinkholes, landslides, and mudslides. Damage caused by flooding or surface water runoff is also typically excluded from standard homeowners' insurance policies. If a stone retaining wall collapses due to old age, poor construction, or water build-up, it is unlikely to be covered by insurance. However, if the collapse is caused by a covered peril, such as lightning, wind, fire, or a vehicle striking the wall, it may be covered. In some cases, retaining walls can be added to a homeowners policy for an additional premium cost.
| Characteristics | Values |
|---|---|
| Coverage for stone retaining walls | Not covered by standard homeowners insurance policies due to “earth movement” exclusion. However, some insurers may cover damage caused by a “covered loss” such as lightning, wind, fire, or a vehicle striking the wall. |
| Coverage for damage caused by erosion or landslides | Not typically covered by standard homeowners insurance policies. DIC insurance or an earthquake insurance policy may provide coverage for landslides or mudslides. |
| Coverage for accidental damage | Homeowners insurance typically covers sudden and accidental damage but excludes gradual wear and tear, deterioration, or lack of maintenance. |
| Coverage for cracks | Minor cracking is generally not covered, but cracks resulting from subsidence are usually covered by home insurance policies. |
| Options for additional coverage | Adding an inland marine rider, including retaining walls as scheduled property on the homeowners policy, or purchasing standalone retaining wall policies from specialty insurers. |
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What You'll Learn
- Retaining walls are considered a detached structure, so damage caused by lightning, wind, fire or a vehicle may be covered by insurance
- Damage caused by earth movement, such as earthquakes, sinkholes, landslides and mudslides, is typically excluded from insurance policies
- Damage caused by gradual deterioration, wear and tear, or lack of maintenance is not covered by insurance
- If a retaining wall collapse leads to damage of other property, this damage may be covered by insurance
- Specialty insurers like Lloyd’s of London offer standalone retaining wall policies to fill coverage gaps
Retaining walls are considered a detached structure, so damage caused by lightning, wind, fire or a vehicle may be covered by insurance
Retaining walls are vertical or near-vertical structures designed to hold back earth or water on one side, creating level areas on sloping sites. They are often used to prevent soil erosion and can be made of various materials, including concrete, masonry, or vegetation. While retaining walls can provide valuable protection against soil erosion and landslides, they are susceptible to damage from natural disasters or external forces.
Homeowners insurance typically covers retaining walls as they are generally considered detached structures. However, coverage is limited to specific conditions, and not all types of damage are insured. Damage to a retaining wall caused by lightning, wind, fire, or a vehicle may be covered by homeowners insurance. These are considered "covered losses" or "insured events" and are often included in the policy.
On the other hand, if a retaining wall collapses due to soil erosion, mudslides, or landslides, it may not be covered by standard homeowners insurance. Such events are typically classified as "earth movement" and are frequently excluded from insurance policies. Even with additional flood insurance or an earthquake policy, coverage for mudslides and landslides may still be excluded.
It is important to note that insurance policies can vary, and specific coverage may depend on the insurance provider and the state in which the property is located. Some insurance companies offer customised policies or additional coverage options, such as Difference in Conditions (DIC) Insurance, which can provide protection for perils that are typically excluded from standard policies.
If you are concerned about soil erosion or the stability of your retaining wall, it is advisable to review your insurance policy carefully and consult with your insurance provider to understand the specific coverage and exclusions related to retaining walls and soil erosion.
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Damage caused by earth movement, such as earthquakes, sinkholes, landslides and mudslides, is typically excluded from insurance policies
While property insurance is essential for homeowners, offering protection against various risks such as fire, theft, and natural disasters, it's important to understand that not all types of damage are covered. One significant exclusion to consider is the Earth Movement clause.
Damage caused by earth movement, such as earthquakes, sinkholes, landslides, and mudslides, is typically excluded from insurance policies. This exclusion is a standard provision in property insurance policies, absolvING insurers from covering damages resulting from specific earth movements. While policies vary, this exclusion generally applies to both direct and indirect damage caused by such events. For instance, if an earthquake causes structural cracks or a collapse, the insurer will likely deny coverage based on the Earth Movement Exclusion.
Earthquakes are particularly destructive and can lead to substantial losses. Given their unpredictable nature and potential for catastrophic damage, obtaining earthquake coverage is essential for individuals in seismically active regions. Some insurance providers offer standalone earthquake insurance policies, while others provide endorsements or riders to supplement standard property insurance. Standalone policies offer comprehensive coverage, including structural damage, personal property loss, and additional living expenses due to displacement.
It's worth noting that even with earthquake coverage, retaining walls may not always be covered. These structures are often considered detached, and their collapse may be attributed to 'gradual deterioration' or 'lack of maintenance' rather than a specific peril. While retaining wall claims can be complex, certain circumstances, such as lightning, wind, fire, or vehicle impact, may allow for coverage under the right conditions.
To protect against landslides and mudslides, which are also considered earth movement events, a Difference in Conditions (DIC) policy can be purchased. These policies offer customized coverage for perils excluded from standard policies, including landslides, mudslides, earthquakes, and floods. However, DIC policies tend to be expensive, with deductibles based on a percentage of the replacement cost of the home.
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Damage caused by gradual deterioration, wear and tear, or lack of maintenance is not covered by insurance
Home insurance is designed to protect your property from sudden and unexpected damage. Wear and tear, deterioration, and damage caused by a lack of maintenance are not covered by insurance policies because they are not classified as sudden or unexpected. Instead, they are considered the homeowner's responsibility and occur over time due to a lack of maintenance.
Insurers may decline a claim relating to a collapsed retaining wall on the grounds of "gradual deterioration" or the failure of an incident to satisfy a "cause" of damage, such as a storm, flood, or land slip. For example, in Oddy v Phoenix Insurance Co Ltd (1966), the collapse of a 12-foot retaining wall was deemed to have been caused by inadequate construction and water build-up over time, rather than a storm.
Insurers may argue that the peril in question (e.g. storm, wind, snow, rain) did not cause the loss but merely facilitated it, and that the actual reason for the failure was a lack of maintenance and gradual deterioration over time. In such cases, the property claim can be declined.
To avoid being refused insurance or paying higher-than-normal premiums, it's important to regularly maintain your property and address any issues related to ageing or wear and tear. Small leaks, cracks, or other signs of wear and tear should be repaired promptly to avoid exacerbation. Regular inspections can help identify necessary repairs before issues worsen.
Additionally, it is worth noting that even if an insurer claims 'gradual deterioration' or 'lack of maintenance', the policy may still include accidental damage, and a retaining wall insurance claim could be valid under that policy term.
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If a retaining wall collapse leads to damage of other property, this damage may be covered by insurance
Whether a retaining wall collapse will be covered by insurance depends on the terms of the policy and the cause of the collapse. While retaining walls are typically covered under homeowners insurance policies, most policies do not cover "earth movement" events, and some insurers may decline claims relating to the collapse of a retaining wall on grounds of ""gradual deterioration" or the failure to satisfy a 'cause' of damage, such as a storm, flood, or land slip.
If the collapse was due to freezing and thawing water, the weight of water, ice, or saturated soil, or a lack of maintenance, animal damage, or damage resulting from a settling of the foundation, homeowner's insurance will typically not cover the loss. If the collapse was due to defects during construction, most insurance policies do not cover that damage. However, if the collapse was the result of a weather event, it may be covered.
If the collapse of a retaining wall leads to damage to other property, this damage may be covered by insurance. In some cases, insurers may argue that poor maintenance was not at fault for the collapse, or that the wall lacked modern features, and therefore the claim should be valid. Landslip is another possible reason for a valid claim, as the failure of the wall may have been brought about by loadings from surrounding buildings, excavations, or other situations.
It is important to review insurance policies carefully to understand the extent of coverage and any potential exclusions, and to take proactive measures to protect retaining walls and property from potential risks and damages.
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Specialty insurers like Lloyd’s of London offer standalone retaining wall policies to fill coverage gaps
Homeowners insurance typically covers retaining walls as they are considered detached structures, similar to fences or sheds. However, it is important to understand the extent of the coverage and any exclusions. For instance, common exclusions include damage caused by animal activity, foundation or soil settling, flooding, water damage, sewage backup, earthquakes, and ice freezing and thawing in cracks in the wall. Therefore, retaining wall insurance may not cover mudslides and landslides, even with a separate flood insurance or earthquake policy.
Specialty insurers like Lloyd's of London, which is the oldest continuously active insurance marketplace in the world, offer standalone retaining wall policies to fill coverage gaps. Lloyd's is a market of members and does not underwrite insurance business itself; its members do. The society acts as a market regulator, setting rules for its members to operate under and offering centralised administrative services.
Lloyd's has its roots in marine insurance and was founded by Edward Lloyd around 1689 in his coffee house on Tower Street. It has a dedicated building on Lime Street, a Grade I historic landmark. Lloyd's unique structure has allowed it to offer innovative solutions to fill gaps in insurance coverage, such as standalone retaining wall policies.
Standalone retaining wall policies can provide peace of mind to homeowners, especially those in areas prone to landslides or erosion. These policies can be customised to fit specific needs and cover events that standard homeowners insurance typically excludes, such as landslides or mudslides. While these policies can be expensive, with deductibles based on a percentage of the replacement cost of the home, they offer valuable protection against financial losses associated with retaining wall damage.
Overall, while homeowners insurance may cover retaining walls to some extent, specialty insurers like Lloyd's of London provide standalone policies that fill coverage gaps and offer more comprehensive protection for retaining walls.
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Frequently asked questions
Retaining walls are frequently considered detached structures, so damage to them can be covered under your homeowners policy under the right conditions. If the damage is the result of a "covered loss", such as lightning, wind, fire, or a vehicle striking the wall, coverage may be possible. However, most standard homeowners insurance policies do not cover repairs to retaining walls, as they are considered ''earth movement'', which is excluded from most policies.
"Earth movement" includes earthquakes, sinkholes, landslides, and mudslides. Most insurance policies will not cover damage caused by these events.
You can add an inland marine rider to your policy to provide supplemental protection for valuable landscaping features and auxiliary structures on your property. You can also have retaining walls specifically listed and covered as scheduled property on your homeowners policy for their reconstruction cost value. If you live in a condominium or planned community, the HOA master policy may include coverage for retaining walls that protect common areas from erosion.
If your stone retaining wall collapses due to a weather event, such as a storm, it may be covered by your insurance policy. However, it is important to review your specific policy to determine what is and is not covered.
