STATEHOUSE – State Representative Ron Bacon (R-Chandler) has authored a bill to protect homeowners affected by mine subsidence by raising the maximum amount of insurance coverage available. Thursday, the bill passed unanimously out of the House of Representatives and will now go to the Senate for further consideration and debate.
Currently, the Department of Insurance (DOI) limits coverage to $200,000 per structure. House Bill (HB) 1021 increases the maximum mine subsidence insurance coverage to $500,000 per structure.
“Mine subsidence is an issue that predominately impacts southern Indiana,” said Rep. Bacon. “Currently, there are several homes in Warrick County that are built over formerly mined property that are worth more than $200,000. This legislation will allow Hoosiers to fully insure their homes and avoid out-of-pocket expenses in the event that damage occurs, while at the same time, having no significant negative fiscal impact on the state.”
Between fiscal years 2011 and 2013, a total of 73 mine subsidence claims were submitted to DOI. Of these claims, 44 were approved, totaling approximately $2.6 million in payments from the Mine Subsidence Insurance Fund. The fund currently has a balance of $5.2 million.
For more information on HB 1021, please visit https://iga.in.gov/legislative/2015/bills/house/1021