A claims expert says landslides are not usually covered by Australian home policies unless they are caused by storms, as authorities continue to investigate a significant incident on Victoria’s Mornington Peninsula that destroyed a $2 million property.

Two other buildings were damaged and a council worker was injured as the McCrae home slid from its hillside footings on January 14. About 20 nearby homes have since been evacuated.

Mornington Peninsula Shire Council says the cause remains unknown and geotechnical assessments are ongoing. 

“South East Water is also conducting extensive testing to determine the source of the water contributing to the landslip, and we are monitoring ground movements closely,” Mayor Anthony Marsh said.

LMI Group founder Allan Manning has compared home policies’ cover and exclusions related to landslide.

He told insuranceNEWS.com.au that “the majority of wordings” exclude landslide, landslip or mudslide except if arising within 72 hours of a storm.

“This may vary in that some include rainwater, flood and storm surge,” he said.

“Some wordings give the write-back for 168 hours, not 72, and some do not have a time limit on the write-back of cover if arising from storm.”

He says a small number of insurers give a write-back for subsequent loss if the landslide is caused by fire, explosion or theft, and one gives the write-back in connection with any insured event.

“Landslide is excluded if naturally occurring in the majority of wordings,” Dr Manning said.

“The only cover given is if arising from a storm, and then within a certain time frame. A few, and I mean few, give subsequent damage cover if arising from certain insured events.”