Soil Movement (Subsidence) Exclusion

Some General Liability policies no longer provide coverage for lawsuits arising from soil movement or subsidence related problems. Soil movement includes movement resulting from expansive soils, sinkholes, settling, shifting, etc. If you have this exclusion on your policy, you have no coverage for such damage to the foundation or home that you have built.

Soil movement and subsidence claims are more common in certain parts of the country where expansive soils are common.

Home builders and developers should consider having construction sites tested by an engineering form to make sure that there are no soil issues that could result in foundation sinking.