Final answer:
Subsidence refers to the downward motion of land and can be caused by various factors. Coverage for subsidence under a homeowners policy may vary and depends on the specific terms and exclusions of the policy.
Step-by-step explanation:
Subsidence refers to the downward motion of land and can be caused by various factors such as soil compaction, mineral extraction, and ground and water withdrawal. It can also occur due to earthquakes, glacial isostatic adjustment, erosion, sinkhole formation, or sediment loading.
In terms of a homeowners policy, coverage for subsidence may depend on the specific policy and its exclusions. Subsidence may be covered under certain circumstances, but it is important to review the policy and its terms to determine if it is included or excluded. It is not accurate to say that subsidence is always covered or always excluded.
Under a homeowners policy, subsidence is typically excluded under the earthquake exclusion or as a specific exclusion. Subsidence refers to the downward motion of land, which can occur for various reasons such as soil compaction, extraction of natural resources, and the withdrawal of ground and water. Events like earthquakes, glacial isostatic adjustment, erosion, sinkhole formation, or sediment loading can also result in subsidence. Since it generally leads to significant damage to property, insurers often exclude subsidence from standard homeowners policies to mitigate financial risk unless additional coverage is purchased, if available.