Homeowners Policy (HO)Question 315 of 474
A landslide shifts the ground under a house and cracks the foundation. Under Section I the loss is:
a.excluded under earth movement
b.excluded as a water damage loss
c.covered as a falling-object loss
d.covered under the collapse peril
Explanation
The earth movement exclusion sweeps in earthquake, landslide, mudflow, sinkhole collapse and the settling or shifting of the ground, which is why quake coverage has to be bought back separately. Calling it a water damage loss picks the wrong exclusion, and the falling-object peril is about something striking the building from outside, not the ground moving beneath it.
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