The recent Laguna Beach landslide has prompted some Southland homeowners to consider landslide insurance.
Like earthquake insurance, landslide policies must be purchased separately from the typical homeowners insurance. Landslide policies primarily are underwritten by Lloyd's of London and are available through insurance brokers. Large insurers, such as State Farm, Farmers and Allstate do not offer them.
Landslide insurance covers the rebuilding of a destroyed home but does not cover the cost of stabilizing the ground, which often is expensive, said George Lefcoe, a USC professor specializing in real estate law. Nor does the insurance cover upgrades to the new dwelling, which may be required legally, he added.
The coverage is expensive too. Premiums on a landslide policy for an $800,000 home in Southern California, for example, could run about $2,580 per year, said Joshua Feinauer, an administrator at insurecat.com, an online insurance brokerage in Salt Lake City that offers such policies. The insurance covers the cost to rebuild the original home; $50,000 maximum for additional structures; up to $75,000 for personal property; and up to $25,000 for additional living costs while the home is being rebuilt.
