The policy will indicate whether the retaining walls are covered and list any exclusions which apply to them. If retaining walls are not specifically excluded, and the damage which happens is caused by something other than the mentioned exclusions, the retaining wall will be covered within the terms of the policy. Certain retaining walls are uninsurable due to the nature of their construction and the intrinsically higher incidence of damage claims related to them.
The purpose of a retaining wall is to separate different levels of soil in a terrain intended by nature to be sloped. As a result of this natural tendency, there is a constant natural force behind the wall, putting pressure on the wall and trying to return the soil to its natural sloping state.
Therefore, while the view and location increased the market value – the value the home will sell for on the open market – the insured value only needs to reflect the cost to rebuild the house as it stands currently.