Does Homeowners Insurance Usually Cover Retaining Walls?

Retaining walls are essential for allowing drainage and keeping mud and dirt out of your yard or house. They seem to hold back a lot, so for a home backed by a wide hill, it’s only natural to be concerned about the soundness and protection of the hulking structure that is keeping you safe and sane.

At first glance, retaining walls appear to be protected by homeowners insurance since they are a separate structure on the property and can be covered for a variety of damages, including fire, wind, and lightning. Detached buildings are typically covered for 10% of the structure’s total coverage. However, looking deeper into the wording of common policies reveals that retaining walls can not be as secure as you think. They are often expressly stated as not being protected, which should be the first thing you look for when reading through your policy. Even if the retaining wall is weakened, it is unlikely to be due to elements that are usually overlooked, such as wind. In fact, many of the most common causes why retaining walls break in the first place are unlikely to be protected.

Covered Structure

A retaining wall is considered a detached structure for the purposes of a homeowner’s insurance policy, and is thus covered for a number of damages, including fire, lightning, wind, and automobiles. Retaining walls and other detached structures are typically covered to a maximum of 10% of the dwelling coverage cap. As a result, if your house is worth $100,000, your retaining wall is worth $10,000.

Exclusions

Animal damage, foundation or soil settling, flooding, water damage, sewage backup, an earthquake, ice freezing and thawing in cracks in the wall, and many other reasons are common exclusions to coverage. You will still be uninsured if you fail to maintain or update the retaining wall. These are much more likely causes of retaining wall damage than any of the other insured causes, such as wind or fire. Although it will seem that the retaining wall should be protected, it is unlikely that it would be damaged by a covered peril.

If you are concerned about your retaining wall, it would be worthwhile to take steps as soon as possible to ensure your peace of mind. Consult your insurance provider to decide precisely what is protected by your new policy. There is a federal flood insurance policy that you may look into if you are concerned about flooding and the harm it may cause to your home and retaining wall. Similarly, in earthquake-prone areas, an earthquake may put a retaining wall at risk of fracturing or triggering landslides. Examine the choices available in your region to see if earthquake insurance can be added to your policy. If you’re still concerned about the condition of your retaining wall, it may be worth it to have it tested, regardless of whether or not your insurance covers it, so you can be prepared and prevent more damage.

If there are many factors at play that resulted in the damage to your retaining wall, coverage can be tricky. For example, suppose animals burrowed holes that froze, threatening the structure’s integrity, which was then blown over by strong wind, or another scenario occurred. Then you’ll need to go to the portion of your policy that outlines what happens if a failure is caused by several factors.