Who needs Mine Subsidence Insurance (MSI)?
Any homeowner whose property sits on top of an abandoned coal and clay mine. Adjacent
properties are also at risk for both mine subsidence and mine water breakouts,
which are the sudden release of water from flooded underground mines.
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How can I find out if my house is on top of an abandoned
mine?
Search the mining conditions under your structure by clicking on the Zip Code Look Up link. Enter your zip code and municipality. The look up will tell you if your structure is located in an at risk area. Some maps are available that show you, street by street, which neighborhoods are undermined. If you are at risk, you are now able to apply online.
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Doesn’t my homeowner’s policy cover me?
Damage due to mine subsidence or mine water breakouts are usually not covered
by your
homeowner's insurance policy.
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Is everything covered with a MSI policy?
Only complete buildings, buildings under construction, and appurtenances to those
structures may be insured. A separate policy is necessary for each building you desire to insure.
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Is my detached garage covered under the policy for the house?
No, a detached garage would need its own policy. A separate policy is necessary for each complete building you desire to insure.
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What are appurtenances?
Appurtenances are defined as fences, retaining walls, paved or improved patios,
walks, driveways, and in ground swimming pools. All appurtenances must be permanently
affixed and securely attached to the land surface
and adjacent to and used in conjunction with the part of the insured structure
that is the building. Damage to appurtenances is limited to 10% of the coverage
amount and covered only if the insured structure is damaged by the same event.
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Does MSI cover the contents of my house?
MSI only covers damage to the building and its appurtenances. In most cases, personal belongings are not damaged and are recoverable.
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What losses are covered?
A MSI policy covers damage to your home or buildings and their appurtenances
that occurs during the policy period and which is caused by the movement of
the ground surface as a result of the collapse of underground coal or clay
mine workings, or from a sudden unexpected breakout of water from an abandoned
mine. Losses to appurtenances are limited to 10% of the coverage amount. The
insured building must be damaged by the same event before losses to appurtenances
can be paid.
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Is there a deductible clause?
Yes. Residential structures have a $250 deductible, while non-residential structures have a $500 deductible.
If at the time of a claim settlement the total cost of repair exceeds the policy limit, the deductible is waived.
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Can I change the deductible amount to reduce the premium amount?
No, the deductibles are fixed at $250 for residential policies and $500 for non-residential policies.
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How are claims processed?
Claims are filed with a DEP field office and are investigated by the MSI Fund. Compensation for a valid claim is based
on the actual cost to repair or replace covered damages and cannot exceed the value of the coverage, or the replacement
cost of the structure, whichever is less. To file a claim, you simply call 1-800-922-1678.
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Which rate applies to my structure, residential or non-residential?
The rate is determined by the use of the structure. If a structure is used for anything other than a residence, non-residential rates apply, with the following exception, more than 50% of the structure was used for residential purposes, then residential rates would apply.
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My lender escrows my insurance premium. Why did I receive a bill?
You need to forward the bill to your lender. The MSI Fund does not directly bill lenders.
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Do you need to inspect my property before I can purchase MSI?
Buildings located in an area with a record of past or recent problems will require an inspection before MSI can be
purchased. A fund representative will contact you if an inspection is required.
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Can a structure be insured if it is damaged?
Structures with significant damage can be insured if the damages are first repaired or if an estimate of the cost to
repair the damages is provided to the MSI Fund. The cost to repair, adjusted for inflation, would be excluded from
any damage claim settlement. However, a policy would not be issued if the cost to repair exceeded the replacement cost
of the structure or the policy limit of $500,000, which ever is less, because that policy would have no value.
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What can cause damage to structures other than mine subsidence?
Following are some common causes of structural damage which may be mistaken for mine subsidence:
- Settlement under surface loads
- Landslides and soil creep
- Shrinking and swelling of soils
- Freezing and thawing of soils
- Surface and subsurface erosion
- Poor construction methods
- Structural movements
- Structural deterioration
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How long has the Mine Subsidence Insurance Fund been in operation?
Pennsylvania's non-profit Mine Subsidence Insurance Fund has been in continued operation since 1961. Since that time,
approximately $25 million in homeowner claims has been paid.
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Applying/Renewing Coverage
How much MSI should I buy?
Coverage is available from $5,000 to $500,000. Your home should be insured up
to its replacement value plus 10% to cover losses to the appurtenances.
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How much does MSI cost?
Residential coverage costs about 65 cents for every $1,000 of coverage. An average policy of $130,000 would cost just $85 a year or about $7 a month.
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How do I purchase a Mine Subsidence Insurance policy?
You are able to apply online via the MSI online application or call the MSI Help Desk at 1-800-922-1678 to apply over the telephone or to have an application mailed to you.
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If I’m buying a house, when should I apply for insurance?
When you have an agreement to purchase or when you make your mortgage application. Your insurance coverage will
become effective at closing.
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How long is the term of the policy?
Coverage is written for a term of one year and is renewable annually.
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I just submitted an application online. When does the policy go into effect?
All applications are subject to review. You will receive a Certificate of Insurance upon completion of the review. The policy effective date is the day that you submit the application via the online system subject to review.
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Can I submit an application or renew my policy online?
You are now able to use your credit or credit/debit card to submit an application or renew your policy. Go to the MSI online system to apply or renew.
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Could I renew my policy over the phone?
You are able to use your credit or credit/debit card to renew your policy over the phone.
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Can I increase my coverage over the inflationary rate online?
No, you need to call 1-888-357-2674 to increase your coverage.
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What will the inflation index be next year?
The Mine Subsidence Insurance Board determines the inflation index for the following year at its December board meeting.
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 Why haven't I received a Certificate of Mine Subsidence Insurance?
The certificate is now printed on the back of your renewal notice. If you receive an e-mail renewal notice, then your certificate will be sent to you via e-mail.
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Senior Citizen Discount
Is there a discount for senior citizens?
Yes, if you’re 65 or older by the premium due date, you get a 10 percent discount. Discounts apply
to the primary residence only. It does not apply to garages or outbuildings.
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I am going to be turning 65 next year. Will I automatically get the senior discount?
Yes, as long as we have your date of birth on record and the policy is for your primary residence.
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How can I tell if I am getting the senior citizen discount?
The rate on your renewal notice will read senior.
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I own multiple mine subsidence insurance policies. Why am I getting the senior discount on only
one of the policies?
The senior citizen discount only applies to your primary residence.
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Refunds/Moving
I recently moved. What do I need to do?
You have two options.
1. If your policy is close to the end date, you can contact us at 1-888-357-2674 and close the account or you don’t need to do
anything and just let the policy run out.
2. If your policy still has time on it, you can request a refund of your unused premium.
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How do I request a refund?
If you would like a refund of your unused premium, you will need to notify us in writing and tell us the date you want the cancellation to take place. If you are selling your property, we recommend canceling your policy on the day of the sale. If you notify us within 30 days of the date of the sale, we will refund your unused premium back to the closing date. If you notify us after 30 days of the closing date, we will refund your unused premium back to the date that we are notified. You will also need to include the policy number, name of the person that the check needs to be made out to, the closing date of the house, telephone number and your forwarding address. You can notify us in writing in one of three ways:
1. Mail the information to us at Mine Subsidence Insurance, PO Box 8462, Harrisburg, PA 17105-8462.
2. Fax it to us at 717-783-4675 to the attention of Mine Subsidence.
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I recently moved. Can I transfer my policy to the new house?
No, you will need to apply for a new policy.
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I recently moved. Can the new owners takeover the policy?
No, the new owners need to apply for their own policy.
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Condominiums and Cooperatives
How are condominium and cooperatives insured?
Condominium and cooperative law requires that the association be named as the
insured of all common elements, such as the walls, ceilings floors, roofs
and other structural components, no matter who pays the premium. Condominium
and cooperative associations are required by law to use the settlement
proceeds to make repairs to the common elements of the insured unit prior to
repairing the non-common elements within the unit.
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What if my
condominium or cooperative association decides not to purchase coverage?
You may apply for coverage for your individual unit and associated common elements
if your association will not purchase coverage. Renewal notices will be sent
to you. Both you and the association will be named as insureds. We encourage
individuals
to apply for sufficient coverage to cover all
common and non-common elements within their unit. Law requires that all settlement
proceeds be paid to the association and that all the proceeds be used to repair
the covered unit. However if the property owner pays the premium, the property owner will also be named on the settlement check.
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I own a townhouse and would like to get insurance. Can I apply for coverage?
Yes, a townhouse owner may apply for insurance at the residential rate. Townhouse
associations may also apply for insurance for all of the units covered under
the association at the residential rate. If you have a policy
and your association decides to purchase coverage for the
entire development, you will then be reimbursed any unused premium.
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Can a condominium or cooperative association apply for coverage?
Yes, by law a condominium or cooperative association owns any insurance that
covers their property no matter who pays the premium. Renewal notices are
sent directly to the association. The associations are required to use all
settlement proceeds to repair the insured property.
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Can the condominium or cooperative association apply for coverage for each unit or for the entire structure?
If the building is configured vertically, that is with units attached at the
floors and ceilings like a high-rise building, then the structure is insured
under one policy. If the building is configured horizontally, that is with
the units attached at the walls like a row of houses, then each unit may carry its own policy or all
the attached units may be covered under one policy.
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Who can file a claim, me or the condominium or cooperative association?
Either the association or the unit owner may report damage.
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