Determining coverage for mudslide claims

Filing a homeowners insurance claim can often seem like a vocabulary lesson as slightly different terms for what looks like a coverable occurrence can mean the difference between whether or not an event is covered by insurance.

This is especially true when it comes to mudslides and mudflows.

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Mudflow vs. mudslide

According to the Federal Emergency Management Agency (FEMA), “a mudflow is a river of liquid mud similar in consistency to a milkshake. Mudslides, on the other hand, are more solid and more closely resemble a cake.”

Both are made of rock, earth and other debris saturated with water, and they can occur in any part of the United States. They can flow rapidly, striking with little or no warning at avalanche speeds. They also can travel several miles from their source, growing in size as they pick up trees and other materials.

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Although similar, knowing exactly which one struck a home is a very big deal. According to the nonprofit Insurance Information Institute, mudflow damage is excluded from the typical homeowners policy but is covered by the NFIP, which is an additional insurance policy administered by FEMA and underwritten by the federal government. In other words, if you have flood insurance and your home gets damaged or destroyed by mudflow, you’re probably going to be covered.

Additional coverage purchase required

“Your standard policy is not going to cover flood, so if you think your home might be exposed to mudflow you’ll want to purchase that additional NFIP coverage,” says Evan Walker, a California attorney who specializes in property damage law.

Don’t confuse mudflows with mudslides as there are distinct differences, reads the Insurance Information Institute’s guidelines for this type of event.

“Mudslides occur when a mass of earth or rock moves downhill, propelled by gravity. They typically don’t contain enough liquid to seep into your home, and they aren’t eligible for flood insurance coverage. In fact, mudslides are not covered by any policy.”

After recent mudflows in California, lawmakers are looking to expand the definition of fire coverage in the event that the underlying cause of a mudflow was directly causes due to wildfire destroying vegetation.

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“We have seen at least one insurance company step up to the plate for these residents following this devastating mudslide, but for others, questions still remain regarding whether their fire insurance policies will cover the losses from these fire-caused mudslides,” California State Sen. Hannah-Beth Jackson says. “My bill makes it clear that current law requires coverage of these fire-caused events.

For many Americans, their home is a financial nest egg, not to mention the result of a lifetime of hard work.

“This is a question of justice and fairness for these residents, many of them retirees, and any Californians who find themselves in similar situations,” Jackson says.

It’s always possible to buy additional insurance coverage for circumstances and events not commonly included in most homeowners policies. These riders (or endorsements) can add coverage for possessions like valuable antiques and artwork, or rare occurrences like volcanoes and earthquakes.

Walker says some insurance companies may allow policyholders to purchase a rider for what the insurance industry calls “earth movements,” which might include coverage for a mudslide.

Read the specific exclusions in your policy and talk to an insurance agent about what you might be able to add to protect you before a catastrophic event happens. If you wait until after the damage is done, you might be too late.

Jason Hargraves ( jason.hargraves@allwebleads.com) is the managing editor of InsuranceQuotes.com.