Mine subsidence insurance

While it may appear unlikely, homes have been built over abandoned mining sites across the United States. These homes are more vulnerable to mine subsidence, which is a slow ground movement process caused by the collapse of an old mining site's shafts and tunnels over time. happens when a mine collapses As a result of this ground movement, adjacent ground may settle and cave in, resulting in cracks and spongy ground.

Mine subsidence can cause significant damage to homes built on these sites. In rare cases, mine subsidence can endanger the lives of those who live nearby. If you live in an area where mine subsidence is a possibility, or if your home is one of millions built over an abandoned mine, it might be a good idea to get mine subsidence insurance to protect against the worst-case scenario. This type of specialized homeowners insurance policy may assist in protecting your finances if mine subsidence causes structural damage to your home.

Mine subsidence

Mine subsidence occurs when the ground shifts, sinks, or collapses as a result of underground mines. When there is movement in the land, it can cause sinkholes, depressions, or troughs, which can cause significant damage to any structures built on or near it. Mine subsidence damage, by definition, is damage caused by the shifting or collapse of the earth from a man-made structure, rather than a natural occurrence such as an earthquake.

There are areas in the United States with a higher concentration of abandoned mines, such as Pennsylvania and Illinois. While the Environmental Protection Agency (EPA) has identified abandoned land mines in 33 different states from coast to coast, only a few states have areas of concern where housing is built on or near possible mine subsidence. In general, abandoned land mines are areas where mining once occurred but is no longer active.

Do I need mine subsidence insurance?

If you live in an area designated by the EPA as an abandoned land mine site, you should think about getting this coverage. If you work with a licensed insurance agent, chances are the agent is familiar with the location of the home and may know if it is prone to mine subsidence.

You should first determine whether your home is built near an abandoned land mine, and the states where this is a concern have resources to do so. Pennsylvania, for example, has an online site where you can simply enter your address to confirm potential mine subsidence concerns. Counties in some states, such as certain designated counties in Illinois, are required to provide coverage by law, but the remaining counties in Illinois have the option to do so. Whether or not the coverage is required, if you are concerned about the proximity of your home to abandoned land mines, it may be worth inquiring about adding the coverage.

Mine subsidence insurance coverage

Mine subsidence insurance coverage may differ depending on where you live and the insurance company writing the policy. In general, the policy includes a deductible but provides coverage up to the policy's specified limit. Most states provide coverage ranging from the most basic to the most comprehensive. In Illinois, for example, you can purchase up to $750,000 in coverage.

Where can I get mine subsidence insurance?

If you live in an area prone to mine subsidence, a licensed insurance agent can advise you on the best options for purchasing this extra policy. Most homeowners who require this insurance can obtain it from their current insurance provider or from a government website.

Some states, such as Pennsylvania, allow residents to purchase through their state's government website. Residents can do this directly or through a licensed insurance agent in the state. It should be noted that, while the coverage is provided by the state of Pennsylvania, it is entirely voluntary.

Other states, including Illinois and West Virginia, require all homeowners insurance providers to provide mine subsidence insurance coverage in affected counties. In Illinois, the insurance coverage must be automatically included in homeowners policies in 34 counties. If you do not live in one of these counties, you can ask your own carrier about adding it to your homeowners policy.

How much does mine subsidence insurance cost?

Rates for mine subsidence coverage vary depending on the insurance limits you select and the state in which you purchase. You should first double-check that your current homeowners policy does not automatically include the coverage, and, once again, a licensed insurance agent can provide more precise quotes based on your information.

In Pennsylvania, for example, policies can be purchased from the Pennsylvania Department of Environmental Protection. The coverage cost is listed as 27 cents per $1,000 of coverage purchased. A policy with $200,000 in coverage for mine subsidence damage is estimated to cost around $54 per year. The amount of coverage you can purchase is usually limited, and in Pennsylvania, the coverage cannot exceed $1,000,000.