Mine Subsidence Insurance Became More Affordable On January 1

Beginning January 1, homeowners and commercial building owners can take advantage of substantially lower rates for mine subsidence insurance, making it more affordable to protect against catastrophic damage should an abandoned mine beneath their property collapse without warning.

 

Effective the first of the year, annual premiums for residential mine subsidence insurance will decrease by 25 percent. Insurance rates for commercial structures will drop by 60 percent.

 

Acting Environmental Protection Secretary John Hanger said this affordable coverage can protect an investment and provide peace of mind to a home or business owner in Pennsylvania’s anthracite and bituminous coal regions.

 

“Most homeowner policies do not cover damage caused by mine subsidence,” said Acting Secretary Hanger. “More than 1 million Pennsylvania homes sit on top of abandoned mines, yet most homeowners in mining regions do not have this most basic coverage. The department has taken several measures to make Mine Subsidence Insurance even more affordable and easier to purchase, and it has expanded available coverage to include sidewalks, driveways, retaining walls, in-ground pools and other types of property.

 

“Starting in January, the average premium for mine subsidence insurance for residential property owners will be less than 70 cents for $1,000 of coverage,” said Hanger. “Homeowners can purchase up to $250,000 of coverage for only $157 per year, or slightly more than $13 per month, and business owners can get the same coverage for $314 per year. For that relatively small investment, they’ll get peace of mind knowing that their homes and businesses are covered in the event of mine subsidence on their property.”

 

Pennsylvania’s Mine Subsidence Insurance program is a non-profit fund administered by the Department of Environmental Protection that provides coverage of up to $250,000 for homes, businesses and attached structures in the event of subsidence from abandoned coal and clay mines.

 

The average residential policy is valued at $130,000 at an annual cost of $85, or just more than $7 per month. A 10 percent discount is also offered to persons 65 years of age and older for residential policies.

 

“Property owners can now purchase mine subsidence insurance by phone, through their local insurance agent or online with a credit card,” said Acting Secretary Hanger. “There’s really no excuse for not purchasing this vital coverage to protect your home and property.”

 

Property owners can apply for mine subsidence insurance directly from DEP by phone at 800-922-1678 or online. The website contains a wealth of information on subsidence issues and program coverage, and features an interactive map program that lets property owners see if their home or business sits atop an abandoned mine.

 

“This rate reduction is the first offered by the program in 45 years and is a result of sound long-term administration and claims management practices,” Acting Secretary Hanger said.

 

The Mine Subsidence Insurance Fund paid out more than $1.3 million for 29 claims during the past fiscal year and has settled more than $23 million in claims since the fund was created in 1961.

 

For more information, visit DEP's Mine Subsidence Insurance webpage.