IL SB3504

Mine subsidence coverage must be included in all policies issued or renewed on or after January 1, 1994 for residences, commercial buildings, and living units on a direct basis, unless the insured waives coverage in writing.

Premiums for mine subsidence coverage are set by the Fund, with minimum reinsurance amounts of $200,000 per residence, $200,000 per commercial building, and $15,000 per living unit for policies issued or renewed on or after January 1, 1996.

Insurers must notify policyholders within 60 days after confirming active mine subsidence damage that continued coverage is optional and can be waived in writing; premiums paid after the loss date shall be refunded within 60 days of receiving a signed waiver.

Once an insured waives coverage in writing, the insurer need not offer mine subsidence coverage on subsequent renewals unless the insured makes a written request for coverage.

Residential coverage may include additional living expenses for temporary displacement caused by mine subsidence damage, while living unit coverage is limited to improvements, betterments, assessments, and additional living expenses.