Mine Subsidence Insurance
Mine subsidence is caused by the collapse or lateral or vertical
movement of structures resulting from the caving in of underground
mines. Mine subsidence insurance has been available in Ohio since
October 1987. It is administered by the Ohio FAIR Plan, which provides
administrative and claims handling services for the Ohio Mine Subsidence
Insurance Governing Board. Insurance companies that offer basic
or multi-peril property insurance within the 37 eligible Ohio counties
are members of the Ohio Mine Subsidence Insurance Underwriting Association
and offer this coverage.
Mine subsidence legislation
Legislation passed in 1992 established mandatory and optional counties
in regard to the purchase of mine subsidence coverage. Property
insurance policyholders (owners of homes, farms, mobile homes or
dwelling fire policies) in 26 counties are required to obtain mine
subsidence coverage upon purchase or renewal of their insurance.
The counties included in this mandatory coverage area are noted
on the chart to the right. In these counties there are about 666,000
properties eligible for mine subsidence coverage.
Mine subsidence insurance premiums in mandatory counties is not
to exceed $5, and is currently $1.00.
Eleven counties offer “optional” mine subsidence coverage,
with the annual premium not to exceed $20. It is currently $5.00.
Optional county residents are offered this coverage when purchasing
or renewing their policies, but purchase is not required. Optional
coverage counties are also shown on the chart.
Coverage and eligibility
Standard homeowners insurance policies don’t typically cover
damage due to mine subsidence. Under mine subsidence insurance,
coverage is equal to the amount of insurance on the dwelling or
$50,000, whichever is less. A 2% coverage deductible applies, with
a $250 minimum and $500 maximum.
Mine subsidence insurance is available for 1–4 unit family
dwellings. It covers the cost of excavation or grading, boilers
or engines below the under-surface of the lowest basement floor
(or where there is no basement below the surface of the ground),
and underground pilings, piers, pipes, flues and drains and/or pilings
below the watermark.
Coverage does not extend to industrial/commercial buildings, commercially
rated dwellings, outbuildings, barns, land, trees, crops, plants
or contents. Vacant buildings or those with less than 50% occupancy
are also excluded.
Mine subsidence statistics
In 2003, the Ohio Mine Subsidence Insurance Underwriting Association
issued 644,909 policies, which is 42.6% of the properties eligible
for coverage in both mandatory and optional counties. There were
640,814 policies in force in 2002, or 42.3% of the eligible properties.
Claims paid in 2003 totaled $167,157 and $414,546 in 2002. Claim
payments include loss adjustment expenses. 105 claims were closed
in 2003, and 101 were closed in 2002. Reserves at year-end 2003
were $214,000 and $180,000 in 2002.
NOTE: For more information online, go to: www.ohiominesubsidence.com.
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