A standard homeowners insurance policy does not cover earth movement of any type, including damage caused by subsidence. However, mine subsidence — the most common type of subsidence homeowners tend to deal with — can be covered with mine subsidence insurance. This can be a separate policy or may be offered as an endorsement by your homeowners insurance company.
In some areas, insurance companies may even be required to include mine subsidence coverage in homeowners insurance policies. In 34 Illinois counties, for example, insurance companies must provide mine subsidence coverage to residents. [1]
What is subsidence?
Subsidence is the gradual sinking or vertical collapse of the ground’s surface beneath a structure — picture a leveled home caving into the land beneath it.
Common causes of subsidence include:
Underground mining for oil and water
Underground collapsing of coal or clay mines
Fissuring limestone and underground caverns
Diminishing soil lying beneath the ground’s surface level
At least 45 states have been affected by subsidence spanning more than 17,000 square miles across the country, according to the U.S. Geological Survey. [2] Most land subsidence is caused by large volumes of water or oil being extracted from nearby sources.
Is subsidence covered by home insurance?
No — subsidence is considered an “earth movement,” which is specifically excluded from homeowners insurance coverage. Most policies also don't cover earthquakes, sinkholes, or landslides either.
If you’re at risk for subsidence damage, you’ll need mine subsidence insurance. Eight states currently have mine subsidence insurance programs where coverage is available through state agencies or insurance companies that are mandated by law to offer subsidence coverage.
What is mine subsidence insurance?
Mine subsidence insurance is an insurance policy that covers damage caused by land subsidence. If you currently live above a mine or near mining activity, you may be able to get mine subsidence coverage through your home insurer. Otherwise, you can contact your state’s government agency to discuss your options.
Mine subsidence coverage is widely available in eight subsidence-prone states, including:
Colorado
Illinois
Indiana
Kentucky
Ohio
Pennsylvania
West Virginia
Wyoming
Coverage may be offered by both private carriers and state subsidence insurance programs, depending on your state.
In Pennsylvania, for instance, where many homes and commercial properties are located above underground coal and clay mines, mine subsidence coverage is offered through the Commonwealth of Pennsylvania’s Department of Environmental Protection. In Indiana, you can get mine subsidence coverage through the Indiana Mine Subsidence Insurance Fund if you live in certain counties.
How much mine subsidence coverage should I buy?
Mine subsidence coverage limits vary depending on the state you live in and your policy terms and conditions. However, most homeowners can get anywhere between $5,000 to $500,000 in coverage. Experts recommend selecting coverage limits equal to your home’s replacement cost — plus 20% more for associated losses. [3]
The cost of a mine subsidence policy varies by state and how much coverage you purchase. In Illinois, it costs an average of $71 per year for $200,000 in mine subsidence coverage. [4]
Frequently asked questions
What happens if my house has subsidence?
Subsidence is when the ground starts to sink and collapse. If your house has subsidence, you’ll likely notice uneven floors and walls, as well as cracking and structural damage. None of this is covered by a standard homeowners policy, unless you have mine subsidence coverage.
Does homeowners insurance cover structural defects?
No, homeowners insurance only covers damage caused by covered perils, like fire and windstorms. Structural defects, wear and tear, maintenance issues, and gradual damage isn’t covered by homeowners insurance.
