Maximum Limits

Is There a Maximum Limit for Mine Subsidence Coverage?

The maximum limit of liability for mine subsidence coverage is usually the same as the amount of coverage provided by the primary insurer for loss due to other property perils such as fire or windstorm. However, there is a maximum amount of reinsurance available to primary insurers through the Fund. As of 7/1/2011, the maximum amount re-insurable for both residential and commercial structures is $750,000. For residential living units (condominium or co-op units) the maximum amount re-insurable is $15,000.

Primary insurers may offer additional mine subsidence coverage over and above the reinsured limit, but are not required to do so by law. In the residential market, primary insurers rarely offer additional coverage, so the Fund provides a limit of reinsurance that is adequate for the vast majority of homes in the mandatory counties. In the commercial market, there are a number of primary insurers that provide higher limits of mine subsidence coverage, even though it is not reinsured with the Fund. Also, higher limits of mine subsidence coverage can be purchased from specialty markets that operate as excess/surplus lines insurers. Those insurers sell coverage through excess surplus lines brokers that work on a wholesale basis. If your primary insurer does not offer the full amount of mine subsidence coverage needed, ask your agent to check the excess/surplus lines brokerage market.