Homeowner

Could California Create a Landslide Insurance Program? What San Diego Coastal Homeowners Should Watch

By Hedda ParashosSeptember 26, 2026

Rancho Palos Verdes is pushing state legislators to create a California landslide insurance program modeled after the Earthquake Authority. San Diego County has already backed similar measures, and if this effort gains traction, it could change what it means to own property on a coastal bluff or hillside lot in La Jolla, Del Mar, and beyond.

No California landslide insurance program exists yet, but that could change. Rancho Palos Verdes is actively pushing state legislators to create one, and San Diego County has already voiced support for similar measures. If you own property on a coastal bluff or hillside lot, this is worth tracking now.

What Rancho Palos Verdes Is Proposing

The city of Rancho Palos Verdes wants the state to create a landslide insurance program modeled after two existing programs: the California Earthquake Authority and the California FAIR Plan. The CEA was created after the 1994 Northridge earthquake, which caused $20 billion in residential damage and left half of it uninsured. The CEA is a privately funded nonprofit managed by the state and now covers about two-thirds of the residential earthquake market in California.

A parallel landslide program would work the same way, offering optional coverage funded through premiums rather than taxpayer dollars. Rancho Palos Verdes has been spending on landslide mitigation at a rate equal to the cost of running the entire city, and its long-term plan is to buy back some affected homes and convert them to open space. The city needs a state-level solution because the financial weight is too much for one municipality to carry alone.

California Landslide Insurance and What It Means for San Diego

San Diego County formally supported AB 986, a bill that would have moved this idea forward. The bill failed, but the county's backing signals that local officials see this as a real risk worth addressing through state policy.

For homeowners and buyers in La Jolla, Del Mar, and other bluff-top or canyon-rim areas in San Diego, this matters for a straightforward reason: right now, standard homeowner's insurance does not cover landslide damage. If a state program eventually fills that gap, it could affect property values, lending requirements, and buyer demand in areas that carry geologic risk. California landslide insurance in San Diego could shift how lenders and buyers price that risk into a purchase.

What This Means For You

• If you own a bluff or hillside property, check whether your current policy covers earth movement. Most do not, and that gap is real today regardless of what the state does later.

• Buyers considering coastal or canyon properties should ask for a geologic report before closing. That information should be part of your decision, not a surprise after it.

• If a state landslide insurance program passes, it could make previously uninsurable properties more financeable and potentially increase buyer interest in hillside locations. Homeowners on affected parcels should watch how that affects their values. Find out what your home is worth →

• San Diego County's public support for AB 986 suggests local officials will back future attempts. This issue is not going away.

No one can predict whether Sacramento will act on this in the next session or the next decade. What you can do right now is understand the coverage you have, the geologic conditions of any property you own or are considering, and how a future program might change the market. That information belongs in your planning today.

For more on buying or owning property in San Diego's coastal communities, visit the Palisade Realty communities page.

Frequently Asked Questions

Does standard homeowner's insurance cover landslide damage in California?

Standard homeowner's insurance policies in California typically exclude earth movement, which includes landslides, mudslides, and soil erosion. Separate riders or specialty policies may offer limited coverage, but there is currently no state-backed program equivalent to the CEA for landslide risk.

Which San Diego communities face the most landslide exposure?

Properties on coastal bluffs, canyon edges, and steep hillside lots carry the highest geologic exposure in San Diego County. La Jolla, Del Mar, and parts of the coastal north county have documented bluff erosion and slope instability. A licensed geologist can assess the specific risk of any parcel you are evaluating.

How would a California landslide insurance program affect property values in San Diego?

A state-backed program could make hillside and bluff properties easier to insure and finance, which historically increases buyer demand. If lenders begin requiring landslide coverage for certain parcels, that could also affect how sellers price their homes. Find out what your home is worth → Neither outcome is certain until legislation passes and program terms are defined.

Source: laist.com