Illinois Mine Subsidence Insurance Fund

  • Mine Subsidence Damage

    Mine Subsidence Damage

    Large cracks in sidewalks, driveways and walls may indicate mine subsidence. They may also be indicative of changes in soil conditions or construction failures.
  • Mine Subsidence Damage

    Mine Subsidence Damage

    Large cracks in sidewalks, driveways and walls may indicate mine subsidence. They may also be indicative of changes in soil conditions or construction failures.
  • Mine Subsidence Damage

    Mine Subsidence Damage

    Large cracks in sidewalks, driveways and walls may indicate mine subsidence. They may also be indicative of changes in soil conditions or construction failures.
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Mission Statement

The Illinois Mine Subsidence Insurance Fund is a taxable enterprise created by Statute to operate as a private solution to a public problem. The purpose of the Fund is to assure financial resources are available to owners of property damaged by mine subsidence.  The Fund fills a gap in the insurance market for the benefit of Illinois property owners at risk of experiencing mine subsidence damage.

The Fund does this by providing reinsurance to insurance companies for damage caused by mine subsidence, conducting geotechnical investigations to determine if mine subsidence caused the damage, supporting and sponsoring mine subsidence related research and initiatives consistent with the public interest, and educating the public and the industry about mine subsidence and related issues.

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About IMSIF

Board of Directors

Ken DeVries

Industry elected Director since 2015, term expires in 2018.

Dorothy Even

Industry elected Director since 2011, term expires in 2018.

Charles M. Hill, Sr.

Public appointed Director since 1983, term expires in 2018.

Hernando Madronero

Public appointed Director since 2015, term expires in 2019.

Paul O'Grady

Public appointed Director since 2014, term expires in 2020.

Robert Ostgulen

Industry elected Director since 1999, term expires in 2020.

Lloyd Parker

Industry elected Director since 2003, term expires in 2019.

David Queior

Industry elected Director since 1998, term expires in 2020.

Richard Sauget, Jr. 

Public appointed Director since 2006, term expires in 2020.

Richard A. Sedlak

Public appointed Director since 2009, term expires in 2018.

Frederick Strauss

Industry elected Director since 2007, term expires in 2019.

The Fund as a Reinsurer

The Illinois Mine Subsidence statute requires all Illinois Class 3 property insurers to make mine subsidence coverage available. The Fund is not a Class 3 property insurer. The Fund provides reinsurance for the property insurers who pay mine subsidence losses.

As a reinsurer, the Fund has a contractual relationship with the primary insurers, not with the consumers who purchase mine subsidence coverage. This is a very important distinction, particularly with respect to the handling of mine subsidence claims.

Once the Fund has determined whether or not a property has been damaged by mine subsidence, the primary insurance company is responsible for administering and supervising the claim in its entirety. The primary insurer may request the Fund to provide technical assistance to identify methods of repairing the damaged property, and to estimate the cost of those repairs. When requested, the Fund provides those services to the primary insurer. The primary insurer may accept, modify or reject the results of that technical assistance. The primary insurer controls the claim valuation and settlement process.

Mission Statement

The Illinois Mine Subsidence Insurance Fund is a taxable enterprise created by Statute to operate as a private solution to a public problem.  The purpose of the Fund is to assure financial resources are available to owners of property damaged by mine subsidence.  The Fund fills a gap in the insurance market for the benefit of Illinois property owners at risk of experiencing mine subsidence damage.

The Fund does this by providing reinsurance to insurance companies for damage caused by mine subsidence, conducting geotechnical investigations to determine if mine subsidence caused the damage, supporting and sponsoring mine subsidence related research and initiatives consistent with the public interest, and educating the public and the industry about mine subsidence and related issues.

History of the Fund

Prior to 1979, Illinois residents did not have insurance coverage for damages caused by mine subsidence. Since much of the mining was done decades ago, and many of the mining companies are no longer in existence, homeowners had very few opportunities to recover from the responsible party. Through an Act of the Illinois General Assembly, Illinois became the second state to make mine subsidence coverage available. The Act requires that mine subsidence coverage be offered for residences and commercial buildings in the State by all property insurance companies licensed to do business in Illinois. The statute also created the Illinois Mine Subsidence Insurance Fund (IMSIF), making it the reinsurer for primary insurers that offer the coverage.

The Fund is governed by an eleven member Board of Directors comprised of insurance industry and public appointees. Regulatory oversight is provided by the Illinois Department of Insurance.

For more information on the creation of the Fund, please see the Illinois Mine Subsidence Insurance Fund Historical Record.

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