Abandoned Mines

The Mine Subsidence Protection Program was established to pay for damage to Colorado homes that results from coal mine subsidence. The federal government, which shares reclamation fees levied on current coal production with the states, has given Colorado a $3 million grant to establish the Program. The money, invested in a trust fund, is designed to provide a self-sustaining fund to cover claims and help offset administrative costs. A private company is contracted to handle enrollment and program details. Over 1,000 participants are currently enrolled in the program.

What is Subsidence?
Subsidence is the movement of the earth's surface caused by the collapse of underground mine tunnels or shafts. Wherever coal has been mined, underground voids are left behind. Overlying layers of rock and earth naturally tend to sink or shift to fill these voids. When that sinking or shifting reaches the earth's surface, it is called mine subsidence. Subsidence may occur regardless of the age of the mine, the depth, or how much coal was mined or was left behind.

As a homeowner, why do I need protection?
Coal mine subsidence can occur at any time and cause extensive and costly damage. Many Colorado homeowners whose property has been located over coal mines do not know that their homes may be vulnerable. If subsidence were to happen, the cost of repairs can be thousands of dollars. And conventional homeowners insurance won't cover the damage. The Mine Subsidence Protection Program offers an inexpensive means to safeguard you against losses from property damage, up to $100,000 per occurrence up to the value of the home

What is the Mine Subsidence Protection Program?
The Mine Subsidence Protection Program (MSPP) was established to pay for damage to Colorado homes that results from coal mine subsidence. The federal government, which shares reclamation fees levied on current coal production with the states, has given Colorado a $3 million grant to establish the Program. The money, invested in a trust fund, is designed to provide a self-sustaining fund to cover claims and help offset administrative costs. Marsh USA, Inc., the Plan Administrator, has established a special unit with a statewide toll-free number, 1-800-44- MINES, to handle enrollment and Program details.

Is this an insurance program against subsidence damage?
No, it is not. In fact, no insurance coverage designed specifically to address the damage due to mine subsidence is currently available. Most homeowners' policies specifically exclude subsidence events