Mine Subsidence Insurance Becoming Cheaper In Pa

12.31.08 | Terry Diener

Beginning Jan. 1, Pennsylvania homeowners and commercial building owners can take advantage of substantially lower rates for mine subsidence insurance, making it more affordable to protect against catastrophic damage should an abandoned mine beneath their property collapse without warning.

Acting Environmental Protection Secretary John Hanger said effective the first of the year, annual premiums for residential mine subsidence insurance will decrease by 25 percent. Insurance rates for commercial structures will drop by 60 percent.

Officials say the insurance is not mandatory but strongly recommended. More than 1 million Pennsylvania homes sit on top of abandoned mines. The Mine Subsidence Insurance Fund has settled more than $23 million in claims since the fund was created in 1961.