One day after a state of emergency was declared for Rancho Palos Verdes due to the accelerating landslides, some homeowners are worrying about the future of their properties.
Unfortunately, regular home insurance policies do not cover damage caused by earth movement in California.
“If their house starts to slip away, there’s an extreme likelihood they’ll never be covered,” said Insurance broker Scott Carter.
Insurance Broker Scott Carter says because insurance companies do not provide coverage for damage caused by earth movement, which includes land cracking, sinking, shifting or expanding, people will not be compensated if their home is impacted by the landslide.
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“As an insurance agent or broker, the last thing we want to say is, 'I’m sorry you are not covered.' And unfortunately that is happening here,” said Carter.
The dangerous land movement in Rancho Palos Verdes has forced hundreds of people to lose power. In the Portuguese Bend Community, people have also lost gas.
Now some fear the worst if they lose their homes.
Jill Carlton, who has lived in the Seaview neighborhood for 28 years, said several of her neighbors' homes have been red-tagged due to the land shifting in Rancho Palos Verdes.
“When the land is where it’s moving, and being destroyed, the value goes away, so we are looking at possibly losing our entire life savings, which is in our house,” said Jill Carlton.
City and county officials say they are working on plans to manage the landslides now that they are moving at an accelerated rate of nearly a foot a week in some areas.
Carter said many of his clients who live in the area simply feel helpless.
“It runs the gamut, from acceptance to anger, in talking with a number of my insured, many of them are resigned to what is their fate,” the insurance broker said.
If people’s homes are damaged due to shifting land, Carter recommends they still file a claim with their insurance company so they can get an answer from an adjustor who makes the final determination.
He also encourages people to call their insurance companies to verify what is covered and excluded.
