Oil leaks can wreak havoc on the environment and expose homeowners to significant liabilities that could cause plenty of issues. In addition to these risks, it’s a costly problem. The Massachusetts Department of Environmental Protection reported that cleanup could cost $20,000 to $50,000 on average — but as much as $90,000 if the leak seeps into groundwater. Surprisingly, though, many insurance policies fail to cover this liability. It leaves homeowners facing a massive risk if they rely on an oil tank to heat their homes. It prompts the question — what insurance would cover an oil leak? Find out how to find the best insurance coverage for oil leaks and the resulting damage.
Understand Required Coverage
Many people wonder whether insurance for an oil leak is required. The state or your mortgage lender may require some forms of insurance. Thus, you should check if they also offer a clause with oil leak coverage. However, oil leak insurance is not a requirement for homeowners in most cases. Because of this, most homeowners insurance policies do not include it—even if the policy comes in an area where most homes have oil tanks.
Assess Your Risk of a Leak
If you’ve reviewed your home insurance and found that an oil leak is not covered, you should assess your risk of experiencing an oil leak. If your home has an oil tank, there is a risk — no matter how small it might be — and you should not discount the risk. Oil leaks are relatively rare, but they are incredibly costly when they do happen. Additionally, certain tanks — such as above-ground tanks — are more vulnerable to leaks that other types of tanks.
Decide Whether You Need Coverage
Once you’ve reviewed your insurance coverage and assessed your risk factors, you should decide whether or not you need to invest in additional oil insurance coverage. If so, you should look for an insurer that provides oil leak insurance as an add-on to an existing policy to take advantage of savings. You should also look for an insurer who has experience insuring a local market where oil tanks are standard.
Choose the Right Insurance
These considerations have likely led you to realize that you need insurance to protect against the possibility of an oil leak. Indeed, in addition to the risk that you assume for your oil tank, you should remember that a leak could also harm your neighbors’ property and the surrounding environment. To prevent this liability from coming to fruition, you should choose a policy with adequate coverage in the event of an oil leak. If a leak occurs, a suitable policy will protect you from high costs and ensure it gets resolved quickly.
About E.J. O’Neil Insurance Agency
Since 1898, E.J. O’Neil Insurance Agency has provided homeowners with reliable coverage and high-quality customer service. Today, we offer a variety of policies, including commercial, boat, automobile, homeowners, motorcycle and renters insurance. Quotes are free by phone or online request, and we can provide notary and other services at our location. We pride ourselves on caring for customers when they need it most, proving it with over $3.2 million in claims paid over 12 months. To find the right coverage for your need, call 413-594-4757 or visit us online.