Even as the devastating wildfires smoldered in Southern California, some homeowners' concerns already had shifted to another threat: landslides.
Charred hillsides stripped of vegetation can't hold water. So, residents lucky enough to escape the fires still could see their homes fall victim to a torrent of soil, rocks and mud once the winter rains arrive.
What many of them may not know is that most homeowner insurance policies don't cover landslides, mudslides or sinkholes.
Just last month, this dismal reality hit home for La Jolla residents whose houses were destroyed or damaged in a massive landslide in the Mount Soledad neighborhood.
Those who own homes in slide-prone areas "need to realize that insurance will not cover this peril," said Tully Lehman, communications specialist with the Insurance Information Network of California. "Because of that, it may be necessary for the homeowner to obtain a loan to rebuild or create a savings account earmarked for any slide issues."
It's a problem that has started to receive notice on a national level. A bill in the House that is gaining momentum would provide insurance coverage for landslides and other disasters. And last month, a Pennsylvania legislator concerned about damage from heavy rains and mining-related earth movement introduced a measure to create a landslide insurance program for state residents. If it succeeds, it would be the first of its kind in the nation. The program would not only offer property owners coverage, but also would provide loans and grants to help residents with repairs.
In California, there is another avenue that few homeowners -- and surprisingly few insurance agents -- seem to be aware of. Property owners can buy coverage specifically for landslides through AmWINS Insurance Brokerage of California, which is backed by Lloyd's of London.
George Orr, senior vice president of the company, said his biggest frustration is that agents routinely tell clients that landslide insurance isn't available.
AmWINS, one of the best known of the few companies nationwide that offer such coverage, has sold the policies in California since 1998 and now has about 2,000 to 3,000 property owners on board. The company sells landslide coverage in 23 states and has written more than 10,000 home policies.
It's not cheap, and not everyone can get it.
For a home valued at $350,000, the annual cost is about $1,000. For a $500,000 home, it's $1,650; for $1 million, $3,300. And that doesn't include inspection fees and other charges.
