Section V. Exclusions (cont'd)
The SFIP does not insure for loss to property caused directly by earth movement, even if the earth movement is caused by flood. Some examples of earth movement the SFIP does not cover are:
  • earthquake
  • landslide
  • land subsidence
  • sinkholes
  • destabilization
  • movement of land that results from accumulation of water in subsurface land area
  • gradual erosion

The SFIP does, however, pay for losses from mudflow and land subsidence as a result of erosion that are specifically insured under the definition of flood, Section II.A.1.c and Section II.A.2.

Note: The adjuster should recognize and immediately report potential structural instability of the insured property to the NFIP DSA or the WYO company and recommend that a qualified licensed expert conduct an on-site inspection of the insured building. The expert should provide a comprehensive report detailing causation of the settlement/subsidence including photographs of the structure.
Three story house sliding down the side of a hill.