What Homeowners Insurance does not cover? 
Continued...
Federal catastrophe support usually offers loans to help cover flood damage, not compensation for your losses. Even then, those loans are only available if the President formally declares a disaster. Federal declarations occur in less that half of flood events. A flood insurance policy will reimburse you for covered losses, even if the flood is not a federally-declared disaster. Your homeowner policy won't cover earth movement, which includes landslides and erosion, earthquakes, mudflows, earth sinking or volcanic eruption. You can usually add earthquake coverage to your policy for additional premiums. If your insurer does not offer that option, you should be able to purchase a separate earthquake policy. Earthquake insurance does not cover a loss caused by landslides or erosion. You may be able to buy a special rider for your homeowner policy that includes all-peril coverage of contents, including earth movement.
This rider would only cover contents, not the structure, and some companies may not offer this option, so you may need to shop around. You also may be able to find separate earth-movement coverage that includes structures in the "surplus-lines" market through an agent or a licensed broker. Consumers should choose these companies carefully, because surplus-lines insurers are not covered by the state guaranty fund. Also, because carriers have the authority to underwrite (i.e., select risks they want to insure), it still may be difficult for some hillside homeowners to obtain this kind of coverage.
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Think about it! More than ever, quality homeowners insurance is an absolute necessity. Without it, an accident or natural disaster could mean financial ruin to you or your family.
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