Homeowner's policies specifically exclude earth motion or destruction of your actual earth property. You can get "Difference in Conditions (DIC)" coverage, but I wouldn't be surprised if it was not offered in Rolling Hills. Also, it just covers the structure, not your land property.
I think if your land just disappears (falls into the ocean due to cliff erosion, is completely swept away in a landslide), you are just SOL.
Probably the best these people can hope for is a FEMA loan. I suspect that they just lost $3 to $7 million of equity. POOF! Gone. One minute you are house-rich, the next you are house-poor.
