Sunday, April 15th, 2001 — Most first party property policies contain some form of exclusion which precludes coverage for damage to buildings caused by the shifting or movement of the ground beneath it. A typical policy provides the following language:
We do not insure for any loss to the property which consists of, or is directly and immediately caused by …
… EARTH MOVEMENT, meaning the sinking, rising, shifting, expanding or contracting of earth, all whether combined with water or not. Earth movement includes but is not limited to earthquake, landslide, mudflow, sinkhole, subsidence and erosion.
The courts have handled a variety of claims dealing with this exclusion. Outlined below are relevant decisions from across the U.S.