In an area, which is proliferated with mines, the dangers of mine subsidence seem more threatening than any natural disasters. Indiana is one such state where mine subsidence occurs at a more frequent rate given the numbers of abandoned mineshafts above which are built most of the residences. Mine shafts possibly hundreds of feet below your home, begin to collapse gradually and as this happens the layers of earth sink into these underground mines.
This sets off a domino effect, which results in substantial damages to homes and other structures located above the collapsing shaft. The amount of subsidence to a great extent influences the spread and degree of damage, if any that may occur.
Mine subsidence is a special concern to south western Indiana homeowners and is powerful enough to cause costly damage to homes and other buildings.
State Insurance Department figures maintain that in the past ten years homeowners have spent over $1 million in attempts to repair mine subsidence damage. In 1986, Indiana’s legislature established the Indiana Mine Subsidence Fund to provide insurance for property owners in the 26 Indiana counties within the Illinois Coal Basin.
The insurance policies available in Indiana are the standard homeowners policies such as:
- Broad Form (HO-2) – This covers only the names perils listed in the policy.
- Special Form (HO-3) – This accords cover for your property and liability with respect to the dwelling, other structures in your premises, and loss of the dwelling and other structures due to the named perils listed in your policy (e.g., fire, lightning, windstorm and hail, falling objects, etc.). Personal property is also covered for perils listed in your policy. HO-3 is more comprehensive than HO-2.
- Comprehensive Form (HO3/HO5) – This policy provides the broadest coverage available for all perils not specifically excluded in your policy. Note that it is not offered by all insurers and is usually more expensive.
- Tenants Form (HO-4) – This covers a renter's personal property, liability, and additional living expenses (ALE).
- Condominium Form (HO-6) – This covers a condo unit, personal property and any additions and alterations made to the inside of your unit. Condominium owners can also buy additional cover for any liability associated with their holdings in the condominium association's common ownership.
- Modified Coverage Form (HO-8) – This offers cover when replacement costs for an older home surpass its market value.
Note that the standard homeowners insurance does not include insurance for damages suffered due mine subsidence. You must purchase mine subsidence insurance as a rider to your policy. Subsidence insurance can be added to your property owner’s policy when it is purchased or renewed.
Indianan state passed a new legislation in 2001 which raised the amount of coverage that can be purchased for mine subsidence insurance coverage. Since that time mine subsidence insurance coverage can be purchased for up to $200,000.
There are different counties in Indiana, which have been defined as eligible for Mine Subsidence Insurance. These are:
| Clay | Crawford |
| Daviess | Dubois |
| Fountain | Gibson |
| Greene | Knox |
| Lawrence | Martin |
| Monroe | Montgomery |
| Orange | Owen |
| Parke | Perry |
| Pike | Posey |
| Putnam | Sullivan |
| Spencer | Vanderburgh |
| Vermillion | Vigo |
| Warren | Warrick |
According to the National Association of Insurance commissioners (NAIC), Indiana ranked 39th in cost for homeowners insurance in 1999 at an average cost of $373 per year. the national average was $487.
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