Mine Subsidence Insurance | Bankrate

Mine subsidence is dangerous in areas where old mine sites exist. This is a type of surface-level ground movement that occurs when underground collapse or movement occurs. Although damage to homes due to mine subsidence is rare, the risk is high in some areas of the country, and typical home insurance policies do not cover these damages. If you live in an area where land subsidence is occurring, we recommend purchasing additional insurance to cover your home.

What is mine subsidence?

Mine subsidence occurs when ground movement, subsidence, or collapse occurs as a result of underground mines. Movement can create sinkholes, sinkholes, and valleys in the land, which can result in significant damage to structures built on or near it. Mine subsidence damage, by definition, is damage caused by ground movement or collapse from man-made structures, and not by natural phenomena such as earthquakes.

There are two types of mine settlement: pit and slag.

• Pit subsidence: This form is usually small, with most holes less than 16 feet in diameter and less than 8 feet deep (though hole size can vary widely). Pit subsidence appears as a steep side or bell-shaped hole. They are usually not very large, so they are unlikely to cause any damage to your home, especially if the holes fill up quickly.
• Case sinking: Sag settlements are significantly larger and more common than pit settlements, as they are caused by the collapse of mine supports and roofs (not just roofs). Mine subsidence can often be identified by looking at gentle depressions in the ground that can be hundreds of feet in diameter. As the cave-in progresses, the size of the cave-in can reach several acres.

There are areas in the United States, such as Pennsylvania and Illinois, where abandoned mines are concentrated near residential areas. The Environmental Protection Agency (EPA) has identified 33 states with abandoned mines, but only a handful of states have areas of concern where homes are being built at or near mines. Abandoned mines generally refer to areas that were previously mined but are no longer active.

Do I need subsidence insurance?

If you live in an area identified by the EPA as an abandoned mine site, you may want to consider adding this coverage. If you are working with a licensed insurance agent, a knowledgeable agent may be familiar with your home’s location and may know if it is prone to land mines.

If you’re not sure whether you need subsidence insurance, consider talking to a licensed insurance agent or doing some research before adding insurance. First, you will need to find out if your home is built near an abandoned mine. States where this is a concern have resources available to provide information on this. For example, the state of Pennsylvania offers an online site where you can check concerns about mine sinking by simply entering your address.

Counties in some states, such as certain counties in Illinois, require home insurance policies to automatically include mine subsidence coverage, which policyholders can opt out of in writing. Regardless of whether coverage is required or not, if you are concerned about your home’s proximity to abandoned mines, it may be worth inquiring about additional coverage.

Not all states offer subsidence insurance. Typically, only states with a high risk of damage from subsidence give homeowners an option (and sometimes require it). These conditions include:

• colorado
• illinois
• Indiana
• kentucky
• ohio
• pennsylvania
• west virginia
• wyoming

How much landmine subsidence compensation do I need?

Mine subsidence coverage may vary depending on your state and the insurance company that writes your policy. Coverage generally includes a deductible, but provides coverage up to a certain limit stated in the policy. Most states have both a minimum and maximum amount of coverage that you can purchase. For example, in Indiana, you can purchase insurance for up to $500,000.

Where can I purchase land subsidence insurance?

Depending on where you live, subsidence insurance may be available through a private insurance company or state program. If you are having trouble finding affordable insurance, you may want to consult a licensed insurance agent in your area who is familiar with subsidence insurance.

Some states, such as Illinois and West Virginia, require all homeowners insurance companies in the state to offer subsidence insurance in affected counties. In Illinois, there are 34 counties that require insurance to be automatically included in your homeowner’s insurance policy. If you are not a resident of one of these counties, you can inquire about adding to your homeowners insurance through your carrier.

How much does subsidence insurance cost?

The cost of subsidence coverage varies depending on the insurance limits you choose and where you live. We recommend first checking that your current homeowners policy does not automatically include subsidence insurance, as some homeowners insurance policies may already include coverage. I will. Comparing quotes from private insurance companies and coverage options that state programs may offer may help you determine what is the least expensive option for your coverage needs.

In Pennsylvania, for example, there is insurance available for purchase through the Pennsylvania Department of Environmental Protection. The cost of home insurance is listed at 27 cents per $1,000 of insurance purchased. It is estimated that a $160,000 policy that covers damage caused by mine subsidence would cost approximately $43.75 per year. There are usually limits on the amount of insurance that can be purchased, and in Pennsylvania, the amount insured cannot exceed $1,000,000.

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