The Department of Environmental Protection announced Friday it has reduced rates for Mine Subsidence Insurance which covers losses resulting from abandoned coal or clay mining and from damage caused by the sudden discharge of water that may be contained in a mine void.

The MSI premium for a residence has been reduced by about 15 percent. The premium for a non-residence was reduced by more than 50 percent, so that it now matches residential rates. The maximum coverage available for a single structure is $500,000.

The risks associated with mine subsidence are typically excluded from standard homeowner’s insurance policies. So in 1961, the General Assembly established the MSI Fund to provide a reliable and affordable source of compensation against mine subsidence losses. The cost to repair mine subsidence damage can be very high. While the average loss is $50,000, many claims have been paid in excess of $200,000.

MSI, which DEP administers, is a non-profit insurance fund sustained by its policyholders’ premiums. It is the largest provider of mine subsidence protection in Pennsylvania. This is the second time the MSI Fund has reduced its premium rates in the past five years, and the fund has never failed to compensate for a valid claim.

All residents who own structures in a mining region are encouraged to visit the Mine Subsidence Insurance website or call 800-922-1678 to check mining conditions and determine whether it is necessary to apply for coverage.

To make an informal request for mining information and mine maps, contact DEP’s California District Mining Office by sending email to: EP-CSR@pa.gov, call 724-769-1100 or by U.S. mail at DEP, California District Office, 25 Technology Drive, Coal Center, PA 15423.

8/6/2012