What Is Mine Subsidence Insurance? What Does It Cover?
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Mine subsidence insurance is a special insurance policy covering home damage caused by the movement of land triggered by a man-made mine. Millions of homes in the US are built over abandoned mines. If your home is vulnerable to land shifts caused by these mines, the damage may not be covered by your standard homeowners insurance policy.
Mine subsidence insurance rates are generally very affordable. You should consider buying a policy or adding coverage to your existing policy if you live in an at-risk area.
What is mine subsidence?
Mine subsidence is generally defined as ground movement — lateral or vertical — caused by the sinking, shifting or collapsing of man-made underground mines. The types of mines include coal, clay, limestone and fluorite. The risk is generally concentrated in parts of the country with a large number of homes near abandoned coal mines, such as in Pennsylvania and Illinois.
Abandoned mines can have a variety of damaging effects on the integrity of the land located directly above or even in the surrounding area. A collapse of pillars supporting a mine roof can result in "sag," or trough subsidence. This is the most common type of subsidence, and the resulting depression in the ground can spread over several acres. A sinking or collapsing mine can also cause pit or sinkhole subsidence, which creates a hole in the ground after a mine roof collapses.
Note that mine subsidence only refers to movements in the ground caused by man-made structures. Ground movement caused by an earthquake, a landslide, soil erosion or another natural phenomenon is not considered mine subsidence.
What does mine subsidence insurance cover?
Mine subsidence insurance covers damage from a sag subsidence or sinkhole subsidence.
If you live above or near an abandoned mine, it's important to buy mine subsidence coverage, as this damage is usually excluded in standard homeowners insurance policies.
Where can you buy mine subsidence insurance?
Mine subsidence insurance is generally only offered in states with a notable number of properties over abandoned mines. This includes Colorado, Illinois, Indiana, Kentucky, Ohio, Pennsylvania, West Virginia and Wyoming.
Given the localized nature of this risk, coverage is usually offered by state governments or by private companies that are required by the state to offer coverage. Mine subsidence coverage can vary by state, but policies provided in Pennsylvania provide a useful example.
The state government of Pennsylvania supplies mine subsidence insurance with the following features:
- Policy limits: Coverage limits range from $5,000 to $1,000,000.
- Cost: Annual premiums are approximately $40 per $150,000 of insurance coverage.
- Appurtenances: If appurtenances — fences, patios, driveways and other permanently affixed structures — are damaged in the same mine subsidence episode that damages the structure of your home, those losses are covered for up to 20% of your overall coverage limit.
- Policy deductible: You must cover this amount out of pocket when making a claim. In Pennsylvania, however, the deductible is fixed at $0 for residential structures in Pennsylvania.
- No contents coverage: In Pennsylvania and most other states, mine subsidence insurance only covers the structure of your home, not your personal belongings.
As a contrasting example, in Illinois — another state with widespread mine subsidence — the state government does not offer mine subsidence insurance itself. Instead, it requires insurance companies in the state to include the coverage in their policies automatically for 34 at-risk counties (out of the state's 102 counties). Insured customers who don't want the coverage have to reject it in writing.
Coverage limits in Illinois vary by insurance company. You should always check your policy to ensure you understand the level of mine subsidence coverage you have.
Even if you live in one of Illinois's 68 counties without mandated mine subsidence insurance, you can ask your insurance company about adding an endorsement to cover the peril.
This advice also applies to regions of the country at lower risk for mine subsidence. If you live somewhere that doesn't sponsor or mandate the insurance but feel your home is at risk, contact your homeowners insurance company to see if coverage is available.
Do you need mine subsidence insurance?
You only need mine subsidence insurance if your home is near an underground mine, which you may be able to check online or locally, depending on where you live. In some states, such as Illinois, Indiana and Pennsylvania, you can check your address on online maps.
The most reliable way to understand your risk, however, is to ask local sources. Talk to the seller or developer of your home about mine subsidence risks in your area. You can also check with a county clerk or zoning board for information.
In some cases, your homeowners insurance policy may already include mine subsidence coverage because of state requirements. For example, Illinois and Ohio require property insurance companies to include the coverage automatically in their policies for the most at-risk counties.
How much does mine subsidence insurance cost?
Regardless of your location, mine subsidence insurance is very affordable, with coverage much cheaper than a standard homeowners insurance policy. Costs may vary widely, though.
For example, mine subsidence insurance in Indiana may cost as much as $138 for $200,000 in coverage. But if you live in an Ohio county where the coverage is mandatory you'll pay only $1 per year. Even in Ohio counties where coverage is optional, premiums are only $5 a year.
State | Annual mine subsidence insurance cost |
|---|---|
| Colorado | $35 (plus a $200 inspection fee) |
| Illinois | $71 |
| Indiana | $138 |
| Kentucky | $41 |
| Ohio | $1 ($5 where optional) |
| Pennsylvania | $107 |
| West Virginia | $48 |
| Wyoming | $400 |
Annual premium is for a mine subsidence insurance policy with a $200,000 limit.
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