Hoffman Updates to Illinois Mine Subsidence Insurance Fund Now Law

BELLEVILLE, Ill. – A plan led by state Rep. Jay Hoffman, D-Swansea, to reinforce the Illinois Mine Subsidence Insurance Fund by updating decades-old statutes to better align with current needs and better serve Metro East property owners is now law.

“Mine subsidence is a frustrating challenge for homeowners in our area, and the Illinois Mine Subsidence Insurance Fund plays a critical role,” Hoffman said. “This is a needed measure that updates our state law governing the fund so that it can operate effectively for homeowners across our state.”

Hoffman worked on House Bill 5376 in conjunction with the Illinois Mine Subsidence Insurance Fund, which is a taxable, private reinsurer created by state statute to ensure financial resources are available to owners of property damaged by mine subsidence. The insurance fund effectively fills a gap in the insurance market for the benefit of Illinois property owners at risk of experiencing mine subsidence damage.

Mine subsidence can occur when the roof of underground mines collapse, causing the ground above to sink or subside. The issue is a concern in the Metro East region, which is home to numerous old mines dating back to the 1800s that can cause above ground issues, such as cracked foundations.

Prior to the creation of the Illinois Mine Subsidence Insurance Fund in the late 1970s, homeowners did not have recourse because property insurance did not cover the issue. The fund has played an important role for homeowners since, and Hoffman’s House Bill 5376 modernizes the decades-old state statute to better reflect the needs of today.

His measure adjusts definitions to reflect operational practices and industry standards, updates the fund’s governance, improves transparency for homeowners, further empowers research programs and removes a deductible for policies issued on or after Jan. 1, 2027.

House Bill 5376 received bipartisan support in the General Assembly, and was signed into law last Friday by the governor.

Additional information on the Illinois Mine Subsidence Insurance Fund can be found at https://www.imsif.com/.

For more information, please contact RepJayHoffman@gmail.com.