Selling a House Over Old Coal Mines in NEPA: Mine Subsidence and Your Sale
Short answer: you can sell a house that sits over old coal mines in Luzerne or Lackawanna County, and you can usually sell one that already has mine subsidence damage. What changes is the paperwork and the buyer pool. Check your address on Pennsylvania DEP's free mine map, find out whether you have state Mine Subsidence Insurance, disclose what you know on the seller disclosure form, and then compare a repair-and-list sale with an as-is sale.
Coal built much of Scranton, Wilkes-Barre, and the river towns around them, and many homes here were built over or near old underground workings. When a homeowner sees new cracks, sticking doors, or a hole in the yard, the first question is often, "Can I even sell this place?" Here is what to check, what to disclose, and how to get it sold.
What mine subsidence is
According to DEP's Mine Subsidence Insurance page, mine subsidence is movement of the ground surface caused by the collapse of underground coal or clay mines, including the roof, floor, and pillars of old mine workings. DEP says it usually shows up in one of two ways:
- Ground collapse, often called a sinkhole, where a mine roof caves in and the ground above drops. DEP notes that most collapses happen where the coal seam is less than 50 feet below the surface.
- Troughs, a wider sag in the ground, often when old mine pillars fail.
DEP also says it is difficult to predict if or when an abandoned mine will fail, and that old mines may collapse decades after mining ends.
Not every crack is mine subsidence. DEP lists look-alikes such as settlement, soil creep, swelling soils, freeze and thaw, erosion, and poor construction. If you are seeing cracks or settling, our guide on selling a house with foundation problems in NEPA covers the broader picture.
Step 1: Check your address on the DEP mine map
DEP's MSI Risk map lets you look up a property by address, coordinates, or municipality. The result tells you one of two things that matter for a sale:
- Underground Mining Area (gray): the site is over or near a known mined area, it is at risk for mine subsidence or a mine water breakout, and DEP recommends Mine Subsidence Insurance.
- Coal Exists, Possibly Mined (pink): mineable coal is known to exist, but DEP has no record of whether it was mined. Insurance is available if desired.
Save the result; buyers often ask. DEP also has a site-specific request form if you want more detail about mining at your location.
Step 2: Know what Pennsylvania's Mine Subsidence Insurance covers
DEP offers Mine Subsidence Insurance (MSI) because, in its words, homeowners insurance usually does not include this coverage. Key points from DEP's program page:
- Cost: residential coverage runs about 27 cents per $1,000 of coverage; DEP's example is $150,000 of coverage for $41.25 a year. Owners 65 and older get a 10 percent discount on a primary residence.
- Amount: coverage is available from $5,000 to $1,000,000, and DEP suggests insuring for replacement value plus 20 percent.
- What is covered: the building, limited coverage for appurtenances like driveways, walks, patios, fences, and retaining walls (capped at 10 percent of coverage and only if the building is damaged in the same event), and some incidental costs such as temporary relocation. A detached garage needs its own policy, and contents are not covered.
- Claims: DEP's claims line is 1-800-922-1678. Payment is based on the actual cost to repair covered damage, up to the coverage amount or replacement cost, whichever is less.
Policies are handled through DEP's online MSI portal.
Step 3: How MSI works when you sell
DEP's FAQ covers several points sellers often miss:
- The policy does not transfer. New owners cannot take over your policy; they need to apply for their own.
- Buyers apply early. DEP recommends buyers apply when they have an agreement of sale or apply for a mortgage, with coverage effective at closing as long as a required inspection does not turn up damage that needs to be addressed.
- Some houses need an inspection first. Buildings in areas with a record of past or recent problems require an inspection before a policy can be bought.
- Damaged houses are harder to insure. A significantly damaged structure can be insured only after repairs or with a repair estimate on file, and that repair cost is excluded from any later claim. DEP will not issue a policy while the structure is still being damaged.
- Cancel and get a refund. DEP recommends canceling your policy on the day of the sale. If you notify it in writing within 30 days of closing, it refunds unused premium back to the closing date.
So a buyer may struggle to insure a house with unrepaired subsidence damage, which can affect their lender. That is one reason damaged houses often sell as-is.
Step 4: What you need to disclose
Pennsylvania's seller property disclosure statement (49 Pa. Code 35.335a) states that a seller must disclose to a buyer all known material defects about the property that are not readily observable. The land section of the form asks directly whether you are aware of:
- any sliding, settling, earth movement, upheaval, subsidence, or earth stability problems that have occurred on or affect the property,
- any existing or proposed mining, strip mining, or other excavations that might affect the property, and
- any sinkholes that have developed on the property.
The form also includes a printed note telling buyers that some properties may be subject to mine subsidence damage and that maps and insurance are available through DEP.
If you know about subsidence, a past claim, or repairs, say so in writing and attach the claim letter, engineer's report, or invoices. Executors and administrators who never lived in the house can note on the form that they lack personal knowledge, but they should still disclose what they do know. Our post on the paperwork you need to sell a house in Pennsylvania lists the other documents to gather.
Your options for selling
1. Repair, then list
If you have MSI coverage and a valid claim, the fund may pay for repairs, and a repaired house with documentation is usually easier to list with an agent. Without coverage, repairs can be expensive, so get real estimates before you commit. Our guide to selling a house that needs major repairs helps you weigh repair costs against the price bump.
2. List as-is with full disclosure
You can list without repairing and price for the condition. Expect some financed buyers to drop out over inspection, insurance, or lender questions.
3. Sell as-is to a cash buyer
Cash buyers do not need a lender's approval, so they can often buy a house a financed buyer cannot. The tradeoff is price: a cash offer on a damaged house is usually lower than what a repaired house would bring on the open market. Our article on what selling as-is really means and our cash vs. agent comparison lay out the differences, and cash offer vs. listing: the real net shows how to compare the dollars after costs.
Which path fits your situation
| Your situation | First step | Sale options to compare |
|---|---|---|
| House is in a mapped mining area, no damage | Print the DEP map result; gather your MSI policy if you have one | Regular listing usually works; buyers can apply for their own MSI policy |
| Cracks or settling, cause unknown | Get a structural engineer's opinion; if insured, call the MSI claims line | Repair and list, list as-is with disclosure, or sell as-is for cash |
| Confirmed subsidence damage with MSI coverage | File and settle the claim before or during the sale | Repair with claim funds and list, or sell as-is and disclose the claim |
| Confirmed damage, no coverage | Get repair estimates so you know the real cost | As-is sale to an investor or cash buyer, or a discounted listing |
| Inherited house you know little about | Check the DEP map and walk the house with someone who knows foundations | As-is sale is common; the estate still discloses what it knows |
Inherited an older house over the mines?
Families often do not know whether an inherited house was ever insured or had a claim. Start by checking the DEP map, looking through the parent's papers for an MSI renewal notice (DEP prints the certificate on the back), and walking the basement for cracks or new movement. The executor or administrator will need letters from the Register of Wills before selling. Our inherited homes page and our plain-English guide to selling an inherited house cover the estate side, and if you are selling an older place in the valley, see our notes on selling an older home in Wilkes-Barre.
How a sale like this works with us
We ask what you know about the house, look at it, and give you a written, no-obligation offer for it as-is, with no repairs or cleanout needed. If you move forward, a title company handles the closing, pays off any mortgage or liens from the proceeds, and the rest goes to you. Our how it works page explains each step, and our post on closing costs when selling a house in Pennsylvania shows what comes out at the closing table. If repairing and listing would likely net you more, we will tell you. To vet any buyer, see how to spot a legitimate cash buyer and how much cash home buyers pay. We work with homeowners across Luzerne County and Lackawanna County. Dealing with water in the basement too? See selling a house with water damage or mold.
Frequently asked questions
How do I find out if my NEPA house sits over an old coal mine?
Use Pennsylvania DEP's free online MSI Risk map. Enter your address and it shows whether the site is over or near a known underground mining area (where DEP recommends mine subsidence insurance) or where coal exists but DEP has no record of mining.
Does homeowners insurance cover mine subsidence damage in Pennsylvania?
Usually not. DEP says damage from mine subsidence or mine water breakouts is usually not covered by a homeowners policy, which is why the state offers separate Mine Subsidence Insurance. Check your own policy and ask your agent to be sure.
Do I have to tell a buyer about mine subsidence when I sell?
Pennsylvania's seller property disclosure statement asks whether you are aware of any settling, earth movement, subsidence or earth stability problems, any mining that might affect the property, and any sinkholes. Sellers must disclose known material defects that are not readily observable. If you know about subsidence damage or past claims, plan on disclosing it, and ask a real estate attorney how to word it.
Can the buyer take over my mine subsidence insurance policy?
No. DEP says new owners need to apply for their own policy, ideally once they have an agreement of sale or apply for a mortgage. As the seller, you can cancel as of the sale date and request a refund of unused premium in writing.
Can I sell a house that already has mine subsidence damage?
Generally, yes, but it narrows your buyer pool. Options usually include filing a claim if you have coverage, repairing and listing, listing as-is with full disclosure, or selling as-is to a cash buyer. Compare the net from each before you decide.
The bottom line
Old coal mines are part of the picture for many NEPA homes, and they do not have to stop you from selling. Check the DEP map, know whether you have coverage, disclose what you know, and compare the net from repairing and listing against an as-is sale. When you want a real number to look at, visit the NEPA Cash Offer homepage, request a cash offer, or call (570) 600-6504.
