The first discovery of coal in North America was in Illinois by Marquette and Joliet. In 1673 they observed and recorded coal outcrops along the Illinois river. However, it wasn't until the 1800's that the settlers first mined outcropped coal for blacksmithing and other domestic uses. It took underground mining a few more years to get started, but about 1848, Belleville, Illinois became home to the first underground mining operation.

The new industry spread along shipping areas to ease access to large commercial centers like St.Louis and Chicago. However, it wasn't until the Civil War, when Illinois railroads grew by leaps and bounds, did coal mining in Southern Illinois really take off. The first underground mines were little more than extended tunnels widened into rooms and worked by hand. The miners used a method called "room and pillar." Using this system, mine workers created openings or "rooms" as they mined. Some coal was left to support the roof; these were called the "pillars."

While past generations were using mined coal as a fuel source, not much thought went into how this mining would impact future generations.  The miners' goal was to get the coal and get out of the mine. Because there was no urbanization above the mines, they weren't concerned about the long term stability of the rooms. When the miners were done, they left. But the abandoned mines left behind were not necessarily stable. In fact, mines can fail in many different ways.

The sinking of land surface caused by failure of undergound mines is called mine subsidence. Although Illinois has about 5,000 abandoned mines and 750,000 acres of undermined land, subsidence is really not a common occurrence. But mine subsidence does occur, and in ways that are almost impossible to predict. The bottom line is, if coal has been removed, the sinking of the land above it will always be a possibility. The resulting mine subsidence can cause minor to severe damage to the structures located above.

Because many of the mining companies which operated in Illinois ceased operations long before the mine subsidence occurred, and because property insurance did not cover such damage, property owners who experienced mine subsidence damage had no recourse. For this reason, special insurance coverage was created specifically to address mine subsidence problems faced by today's Illinois homeowners.

The Illinois Mine Subsidence Insurance Fund began in 1979 by an act of the Illinois General Assembly. It provides reinsurance to companies writing property insurance for losses caused by mine subsidence. It is not a state agency, has no regulatory authority, and doesn't sell coverage directly in the marketplace. Simply stated, the Fund does not issue insurance policies, but operates in the background by reinsuring about 350,000 policies issued through over 250 insurance companies.

Insurance companies write the coverage for their policyholders, and then reinsure the peril through the Fund. The Fund provides technical assistance to determine whether or not the cause of the damage is mine subsidence. Typically, for every 100 claims investigated by the Fund, 20 are caused by mine subsidence.

Today, with changes in energy and environment, it is reasonable to believe that more mining will take place.  Although mining operations have changed over the years to methods that mitigate mine subsidence, we must still deal with the consequences of past operations.  Mine subsidence forces us to confront difficult issues that strike at the single most valuable asset that families own - their homes.  Yes, this damage can be devastating.  But while the search for long term solutions continues, mine subsidence insurance is one way to cope with the uncertainty and risk.

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