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The Basics of Mining Subsidence for Homeowners Insurance Shoppers

Posted in: Home Insurance Articles

By Michael F. McDonough
Jul 21, 2009 - 10:38:40 AM

The Basics of Mining Subsidence for Homeowners Insurance Shoppers

When you go shopping for homeowners insurance there are some perils you know you're going to have to think about. You need to make provisions for flooding, and if you live in an area that has more than one earthquake every thirty years you're going to need earthquake insurance coverage. But did you take the time to think about underground mines and mining subsidence before signing on the dotted line for your insurance coverage?

Active and Abandoned Mines

There are thousands, if not millions, of underground mines all over the world. These mines can stretch for miles deep in the earth, supported by little more than sturdy pillars and clever digging. Needless to say, there's a certain amount of danger associated with these mines, especially when you start talking about the long term.

Current regulations state that mines must be at least 100 feet below topsoil.

Ideally mines would maintain their structural integrity forever. Since that's both impractical and unlikely current regulations are in place to make sure that even if these mines do collapse the damage to the homes and buildings built on top of them will be minimal. Sometimes miners don't get it right on the first try, however. Shallow mines (less than 50 feet) do exist, and these shallow mines can pose a considerable threat to homes if they happen to collapse.

Mining Subsidence Insurance

The very real threat of mine collapse has inspired organizations to push for mining subsidence insurance for homeowners. Whether this type of homeowners insurance policy will be overseen by your state government or a private insurer is going to depend on where you live and what type of coverage your home insurance provider offers. Whichever it happens to be, if your home is in an active mining community (even if the "active" in that sentence was 50 years ago!) you're going to want to make sure you're covered by a subsidence insurance policy.

Damages Covered By Your Subsidence Insurance Policy

There are three types of damages that result from mining subsidence:

1) Cosmetic. When a mine is deep in the earth the amount of shift in the topsoil should be minimal, resulting in cosmetic damages to your home. (For example, cracks in the drywall.)

2) Functional. When things like door frames shift and the functional integrity of your home is changed these are known as functional damages.

3) Structural. Structural damages are the primary concern when you're talking about damages resulting from mining subsidence. Structural damages affect the foundation of your home, requiring you to rebuild the foundation on top of making any repairs to your walls, windows, floors and appliances that accompanied the cave in.

Remember, the last thing you want to do is leave the future of your family in the hands of fate. It doesn't matter how long the mines in your area have been inactive, if you live in or a near a mining community mining subsidence is a very real threat and needs to be considered when you're shopping around for homeowners insurance quotes.