STATEHOUSE – Legislation authored by State Representative Ron Bacon (R-Chandler) regarding mine subsidence insurance was signed into law by the governor.
House Enrolled Act (HEA) 1021 raises the maximum amount of available mine subsidence coverage to $500,000 per structure. Under current law, the Department of Insurance limits coverage to $200,000.
“This legislation is particularly important in southwest Indiana where many homes and businesses sit atop formerly mined property,” said Rep. Bacon. “Currently, structures valued at more than $200,000 cannot be insured for their full worth. This can lead to out-of-pocket expenses for homeowners and was an issue I felt we could easily address without having a significant fiscal impact on the state.”
The Mine Subsidence Insurance Fund has a current balance of $5.2 million. Between fiscal years 2011 and 2013, approximately $2.6 million in claims were paid out from the fund.
HEA 1021 will go into effect on July 1, 2015.