Mine Subsidence Insurance Premiums Lowered

Aug 6, 2012

The Pennsylvania Department of Environmental Protection (DEP) has reduced premiums for MSI, or Mine Subsidence Insurance.

The MSI premium for a residence has been reduced 15% and for a non-residence 50%, in order to match residential rates. Residential rates are now about 55ยข for every $1,000 of coverage. That's $55 for $100,000 in coverage, which lasts one year and is annually renewable.

Amanda Witman, spokesperson for the DEP, said anyone living in an underground coal or clay mining region should consider obtaining MSI.

"A homeowner living in a coal mining region may have an unexpected subsidence, which is basically the ground moving below their home resulting in damages to their home. Mine subsidence insurance would pay for those damages," Witman said.

Witman noted typical homeowners insurance policies do not cover these particular types of disasters.

"Having mine subsidence insurance fills that void both literally and figuratively," Witman said.

Witman said the Pennsylvania Mine Subsidence Insurance program has paid claims ranging from $50,000 to $200,000. The maximum amount of coverage available to purchase is $500,000.

57,000 Pennsylvanians have MSI, but the DEP estimated one million more structures are at risk for mine subsidence. Pennsylvanians can check if their home or structure is in a coal mining region by visiting the DEP's MSI website.