Earthquake, expansive soil, flood, hurricane, landslide and subsidence damage usually not covered!
“All Perils” Means: Learn About the Geology
Every year in every state many property owners discover that their homeowners insurance policy will not pay when their homes are damaged by common geological processes such as earthquakes, expansive soils, floods, hurricanes, landslides and subsidence. These homeowners probably had the impression that their “all perils” insurance policy would pay for almost any type of damage that their home would experience.
I felt the same way when I purchased my first homeowners insurance policy. I distinctly remember the agent telling me that it was an “all perils” policy and feeling good about that. I didn’t read the policy word-by-word to see what it really covers – who reads 50-page insurance policies issued by leading companies in the insurance industry? Everyone assumes that they cover everything.