Many homes across the country still use heating oil as the primary fuel source for their home. While this is efficient for some, it can lead to a sticky problem if the heating oil leaks out of the tank. This type of repair and clean-up can be costly. If you don’t have the right insurance coverage, you will be responsible for the entire cost of the remediation process. You must know what your homeowners insurance covers and what it doesn’t.
Does Homeowners Insurance Cover Oil Leaks?
Depending on your homeowners insurance policy, the answer is, more than likely, no. Having an oil tank on your property can be devastating financially if it should ever leak for any reason. If your oil supplier is at fault for the leak, the responsibility for the clean-up of a spill falls on their shoulders, not yours. However, negligence can be challenging to prove, and you may need more time to be sufficiently prepared. Talk to your insurance to find out how to protect yourself more effectively.
Pollutants That May Not Be Covered
A typical homeowners policy does not cover most residential fuel or fuel oil spills. The primary reason for this is that most homeowners policies generally have exclusions about the leaking or spilling of many different types of pollutants. Fuel and fuel oil are classified in this category and considered “pollutants”. The only way the spilling or leaking of your fuel oil would be covered is if the damage was caused by a peril covered by your homeowners insurance. This could include a fire or a lightning strike. If the tank is leaking alone, the damages will not be covered.
Consider Purchasing an Oil Remediation Rider
If you have an oil tank anywhere on your property or inside your home, it may be in your best interest to purchase what is known as an Oil Remediation Rider. This type of endorsement will protect you from financial loss if your oil tank leaks for any reason and you have an oil or fuel spill on your property. Even if your traditional homeowners policy excludes pollutants, an Oil Remediation Rider will cover the cost of the clean-up and repairs. If you have questions or concerns about this type of endorsement and what it will or will not cover, you should talk to your insurance agent.
Contact 01 Insurance to Get the Best Insurance Policy!
When you have concerns about your fuel oil tank and whether or not your homeowners insurance provides sufficient protection, you must go to the professionals. Contact the professional insurance agents at 01 Insurance today to learn more about what your homeowners insurance covers. Call to schedule a review of your current policy and ask for additional information about an Oil Remediation Rider to ensure that you are fully protected. It will give you the peace of mind you need and deserve.