Do You Have Oil Heat? A Spill Could End Up Costing You Everything
LBP Insurance explains how this inexpensive coverage option could save you thousands of dollars in the long run.
In the wake of a heating-oil spill, what is the first thing on your mind? Contamination? Cleanup efforts? The environment? Well, you should be thinking about your wallet too. If you don’t have oil remediation coverage, you could be looking at a hefty bill after a spill—because a standard home insurance policy won’t cover it.
The Massachusetts Department of Environmental Protection reports hundreds of residential oil-heating leaks and spills annually. A release of oil can be incredibly damaging to your home and surroundings. Cleanup costs can be even more devastating, ranging from $15,000 for a small leak to $250,000 or more for larger spills.
Since 2010, Massachusetts law has mandated that insurance companies offer oil remediation coverage. However, most homeowners’ policies only provide such coverage as an additional purchase option. That means thousands of Massachusetts homeowners with oil heat are not protected, some of whom may not be aware the purchase option even exists.
This issue is so common and concerning that there is currently a petition (accompanied by bill, Senate No. 676) that would require all standard Massachusetts homeowner insurance policies to provide oil remediation coverage. While the fate of that bill remains uncertain, there are things you can do to make sure you are protected right now.
Heating Oil Prevention & Protection Tips
Monitor the condition of your oil tank. Look for blisters, wet spots, rusts, bulges, dents, or drips. Rusted or older oil tanks are more susceptible to leaks and spills.
Make sure the lines and fittings from the tank to the furnace are also free from drips (if visible). If your pipes are beneath the ground, be aware that concrete can corrode the delivery lines over time. Consult your oil dealer about when and if you should update your tank and delivery-service lines.
Have your equipment checked and serviced routinely by local oil delivery and service professionals.
Contact your insurance provider to determine if you have or should purchase oil remediation coverage—it’s often one of the least expensive additional coverage options that could save you thousands should a leak occur.
Want to learn more? Contact us at LBP Insurance for a quote today.