Does your Massachusetts Home Insurance Cover Oil Tank Leaks?
Bob Gallery - Co-Owner - Atlantic Insurance Group Agency, Inc. • November 19, 2022
Important Information if You Have Oil Heat
Home oil tanks contain hundreds of gallons of home heating oil. If your home heating oil tank leaks, it can cause extensive damage to your home, possessions, your neighbors’ property, and even the environment. A February 2022 news story in Massachusetts about a young family whose home heating oil tank leaked and caused thousands of dollars in damage has many Massachusetts homeowners concerned about their home insurance, and if it provides coverage in the event of an oil tank leak.
All oil tanks and systems in homes have the possibility of leaking, regardless of their age or any upgrades. According to Safety Insurance, “most home heating oil spills and leaks result from the delivery or supply line that carries home heating oil from the storage tank to the furnace.” (1)
The cost to remediate a residential oil spill is expensive and depends upon how many gallons have spilled, how long the spill was allowed to continue, whether the concrete and/or ground below the tank has been affected, whether a water supply or neighboring property was affected, and other factors. Oil spill remediation costs can range from $15,000 to more than $150,000, which causes immeasurable stress and jeopardizes a homeowners’ financial stability.
Whether your home has an above-ground or underground oil tank, it’s important to know what your homeowners’ insurance will or will not cover.
Does My Home Insurance Cover Oil Tank Leaks?
Most standard Massachusetts homeowners’ insurance policies provide coverage to repair or replace your home and its contents in the event of damage caused by fires, lightning strikes, windstorms and hail, theft or vandalism. However, there are some losses not covered by home insurance without a supplemental policy. Unfortunately, Massachusetts home heating oil tank leaks fall into this category.
Most homeowners’ policies don’t cover remediation for oil leaks without the purchase of the additional oil tank leak coverage, because of pollution exclusion provisions.
(The formal name for the “oil tank leak coverage” on insurance policies is “Escaped Liquid Fuel Endorsement.”)
A law was passed in 2008 in Massachusetts that requires:
- The installation of either an oil safety valve or an oil supply line with protective sleeve on systems that do not currently have these devices: and
- Insurance companies that write homeowner policies to offer coverage for leaks from heating systems that use oil.(2)
Unfortunately, few homeowners know about this law and have not invested in the optional, yet very important, Escaped Liquid Fuel Endorsement. In fact, environmental law attorney Susan Crane said only “7% of Massachusetts homeowners who heat with oil have the coverage.”
What is the Cost of Adding the Escaped Liquid Fuel Endorsement to my Homeowners Policy?
It’s important to note that the cost and coverage of this endorsement varies by insurance company and by the individual terms of the policy.
However,
in most cases $100,000 worth of coverage is available for as little as $87–$100 annually.
When weighed against what could be substantial clean-up and liability costs (which will total in the tens of thousands, if not hundreds of thousands) in the event of a leak, the cost of the coverage is nominal.
How Can I Add the Endorsement?
The endorsements that can be offered are based upon tanks and fuel oil systems complying with the Massachusetts “Homeowner Oil Heating System Upgrade and Insurance Law” (Chapter 453 of the acts of 2008, amended 2010) (3). The steps to add the Escaped Liquid Fuel Endorsement will differ depending on your specific insurance company, but most require the following to add the endorsement:
- You must have either a non-metallic sleeve around the pipe that feeds the burner or a safety valve to prevent leaks
- You must have a visual inspection of the fuel supply lines for the heating oil storage tank completed by a certified oil technician. The oil technician must then sign and date a certificate of compliance Form 1A.
After these steps have been completed, your insurance agent can then add the coverage to your existing homeowners insurance policy.
What Does the Escaped Liquid Fuel Endorsement Cover?
The coverage provided by the endorsement will vary depending on the insurance company that underwrites your homeowners’ insurance. Typically Escaped Liquid Fuel Endorsements can provide coverage for:
- The expense of cleaning, decontamination, and/or remediation of your property.
- The cost of damage caused to your property by the sudden and accidental overflow/escape of fuel oil from an oil tank or supply lines connected to your heating system.
Most escaped fuel endorsements do not provide coverage for:
- Loss or damage resulting from repeated escape/overflow of oil.
- If damage occurs while the building is under construction or,
- If damage occurs while the building is vacant.
Steps to Help Mitigate or Prevent Home Heating Damages and Oil Tank Leaks
According to Safety Insurance, homeowners should take the following preventive maintenance measures:
- Install smoke detectors and carbon dioxide detectors in your home and change the batteries (if applicable) each year
- Keep the area around the heating system clear of debris and flammable materials
- Have annual maintenance for both your heating furnace and oil tank to prevent future problems
- Install an automatic shutoff valve
- Replace the fuel supply line with one encased in a non-metallic protective sleeve
Home heating oil leaks are not only be stressful, but can also be extremely costly to remediate, cause environmental damage, and the fumes from escaped fuel can pose significant health risks to homeowners and their families.
We can review your current homeowners’ insurance to ensure sufficient coverage in the event of an oil heat related loss or make recommendations for adding the Escaped Liquid Fuel Endorsement to your policy. In addition to home insurance, Atlantic Insurance has provided car insurance, condo insurance, business insurance, as well as life insurance to thousands of Massachusetts individuals and families since 1993. Look to Atlantic Insurance for broad coverage, competitive rates to suit a variety of budgets, and the local, friendly, and compassionate insurance support you deserve.
Please call us at 617-698-2200 if you want to talk more about adding oil tank leak coverage, aka Escaped Liquid Fuel Endorsement, to your homeowners policy.
Getting into a collision can be shocking and scary — and, unfortunately, most people will experience at least one in their lifetime. While you can hope for the best, it’s also helpful to prepare for the worst-case scenario. Familiarize yourself with what to do following an accident so you can try to stay calm and collect the information you need if it happens. From checking on yourself and your passengers to filing a claim, here’s what you need to know about dealing with an accident. Make sure everyone’s okay. Examine yourself and any passengers for cuts, bruises, and other injuries. Take a moment to check for pain in your neck, shoulders, and other parts of your body. Move your vehicle. If you’re able, pull onto the shoulder to be safer and avoid blocking traffic. Call emergency responders. Dial 911 to report the accident and any injuries. The operator will dispatch emergency services as needed. It’s important to get a police report for your claim to provide evidence. Exchange information with the other driver. Regardless of how the accident happened, it’s good practice to exchange information with the other driver. Take pictures of their driver's license, insurance card, and license plates to help support your claim. Don’t assume fault. When talking to the police, the other driver, and witnesses, watch your words. You can answer the officer’s questions about what happened, but you don’t want to say you were at fault. The insurance investigation will make that determination. Take photos of the scene. This is another crucial step for your claim. Take pictures of your vehicle and the other car(s), as well as any visible injuries you and your passengers sustained. File an insurance claim. Finally, get in touch to start the claim process. If you need to seek medical treatment after the accident, keep a record of that. If your vehicle wasn’t towed from the scene, you can decide whether to take it to a body shop of your choice or an insurer-recommended one. Reach out if you need to file a claim, update your coverage, or have questions about your policy.
Flooring can make or break an entire room. For example, older carpeting can make a living room look smaller or less inviting, while newer hardwood flooring can open up the same living room and make it feel welcoming. Whether you’re making major renovations to your home or just want to change up the floors in one or two rooms, this guide can help you choose the right flooring materials for your needs, budget, and stylistic preferences. Tile Ceramic or porcelain tile is a classic floor choice for kitchens, bathrooms, and entryways because it’s waterproof, durable, and easy to clean. There are also a variety of colors and styles to choose from. However, tile can feel cold, and it’s prone to cracks or chips from dropped objects. Generally, ceramic is more affordable than porcelain. Carpet Carpeting can be a comfortable flooring choice for bedrooms and living areas. It’s relatively inexpensive, and there is a range of colors and materials to choose from. However, the carpet also shows wear and tear, including hard-to-remove stains. Hardwood This is a timeless choice for living rooms, dining rooms, and hallways. Many older houses come with hardwood flooring, which can be refinished to look like new. Installing new hardwood floors can be expensive, but there are budget-friendly manufactured options. These floors do require regular cleaning and protection, as they can be easily scratched and scuffed from furniture, children, and pets. Vinyl Vinyl is a popular flooring option for kitchens, bathrooms, and other high-traffic zones. With many styles to choose from, vinyl can mimic the look of wood or stone, plus it’s waterproof, long-lasting and inexpensive compared to other flooring options. Vinyl floors are easy to install, but they may not add much value to your home. Laminate Like vinyl, laminate flooring is affordable and made to resemble more expensive flooring options. However, it isn’t as durable, particularly in moisture-prone rooms like bathrooms or kitchens. If you’re curious about how renovations could impact your insurance coverage, reach out so we can discuss your situation.
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When was the last time you reviewed your homeowners and auto insurance policies? If it’s been more than a year, it may be time to check-in. Both large and small life changes can affect your coverage needs, but it’s easy to forget in the bustle of everyday life. January is a perfect time to sit down with your policy documents or reach out so we can discuss the state of your coverage. Not sure if a check-in would benefit you? Benefits of Reviewing Your Policies Savings: Checking in can make you aware of certain discounts you may qualify for. Maybe you’ve maintained a record of safe driving or installed a home security system, which could both lower your premiums in some cases. Information Gathering: Do you have an up-and-coming teen driver or a large home renovation in the works? Let’s talk about these life changes before they happen, and look at how they may impact your coverage and premiums. New Asset Protection: Purchasing a new car or other large asset, such as luxury jewelry, artwork or antiques, may require updates to your insurance policy. When to Update Your Coverage Home Renovations: Finishing your basement, building an addition to your house or adding outdoor structures will likely require changes to your coverage. It’s important to have enough coverage for the updated replacement cost of your home. Life Changes: Getting married or divorced, having a baby, moving or having a child reach driving age are all life events that should prompt a discussion about your coverage needs. Car Finances: Buying a new car, getting a new auto loan or paying off your current loan can have implications for your car insurance. Reach out to make sure you have the right policies. Homebuying: A home purchase usually requires a new or updated homeowners insurance policy. You may be able to bundle your home and auto coverage for potential savings. A new year can be a great time to check in about your insurance coverage. Get in touch to review your current policies and discuss whether changes are needed.
Working remotely can offer many benefits, but have you thought about the safety of your home office? Whether you work from home every day or on a hybrid schedule, it’s important to make sure your workspace is safe and secure. From pets and children who may wander into your home office to cybersecurity threats, take these five steps to protect yourself, your equipment and your household. Be careful about cord-related hazards. Cords can create a tripping hazard, and the more you have, the more dangerous it may be. You can purchase cord organizers to keep them organized and out of sight. To prevent electrical hazards, check for and replace frayed wires, and unplug equipment when it’s not in use. Practice fire safety. Make sure your home office is equipped with a smoke detector and fire extinguisher. Always blow out candles and turn off space heaters and other electronics before you leave the room. Childproof your workspace. Remember that viral clip of “BBC Dad” getting interrupted in his home office? Kids love to explore, so consider keeping your home office locked or childproofing it by securing tall shelves to the wall and keeping sharp objects and cleaning supplies out of reach. Take care of your physical health. Sitting at a desk all day isn’t the best for your body. Keep a water bottle on your desk to stay hydrated, and take breaks to stretch several times a day. You may also want to get a standing or treadmill desk. Follow cybersecurity tips. I t’s important to protect yourself and your company from phishing scams and malware. Do so by using strong, unique passwords for every account, opting for multifactor authentication where possible, installing a firewall and keeping your antivirus software updated. Be careful with email: Don’t open attachments or click on links in emails you weren’t expecting. These tips can keep your home office safe, secure, and comfortable. Do you have questions about your homeowner's insurance? Reach out for help.
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Were you part of the decluttering craze ushered in by Marie Kondo in the 2010s? You might remember people trying to decide what sparked joy and getting rid of everything else. Minimalism may be losing steam, but it’s still good to reduce clutter. Messes can be stressful and distracting to look at, but they can also be dangerous. Overstuffed shelves can tip over or items can fall off and hit someone, while floor clutter can be a tripping hazard. The following steps can help you find a decluttering routine that works for you. Start small. Clutter can feel overwhelming. Consider starting with just a single shelf or drawer. You can also start small by setting a timer for 15 to 20 minutes and working until that time is up. Set achievable goals. Let’s face it; you’re not going to declutter your entire house on one Sunday afternoon. Set a realistic goal, such as making it through one room a week, so you will feel motivated by the win and keep going. Use the "four-box method." Making decisions about what to get rid of can be the hardest part of decluttering. Try to go with your gut, placing items in boxes labeled "keep," "donate" "sell," and "trash" to make it easier to get everything to its destination. Follow the “one-in, one-out” rule. Buying something and bringing it home is easier than sorting through your stuff later. Give your household a rule: If they want to bring something new home, they have to give away a similar item. Find storage solutions. Once you’ve decluttered a room, make it easier to find and put away the things you’re keeping. Shelves, bins, baskets and other organizing tools can help you store your belongings in an attractive and functional manner. Set a schedule. Make decluttering a regular habit and get your whole household involved. Figure out where you tend to gather clutter and pick a time each week to deal with these areas. Tackle digital clutter. Photos, videos and other files may not be a tripping hazard, but they can clutter up your devices, making it harder to find the things you want to keep. And if you’re paying for cloud storage, you could save money by getting rid of things you don’t want or need. Do you have questions about keeping your property safe with homeowners insurance? Please reach out so we can talk about your policy.
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