07/02/2024
Does home insurance cover an oil tank leakage?
According to OFTEC, around 3,000 oil spill pollution incidents are reported to the environmental regulators in the UK each year. Domestic oil spills can result in a clean-up bill of more than £20,000, with costs quickly escalating if surface or groundwater is affected.
You may be wondering, ‘Will my house insurance cover the costs associated with an oil tank spillage?’ The answer is yes and no. Some providers will cover the costs of the oil lost, along with any damage to the oil tank or your property. However, there are always restrictions to what the policy will cover. Continue reading to understand what home insurance will support you with and what to do if you suspect your oil tank is leaking.
Why do oil tanks leak?
Domestic oil tank leakages can occur for several reasons:
- Corrosion,
- Environmental factors,
- Manufacturing defects,
- Age,
- Poor maintenance,
- Physical damage,
- Improper installation.
Simple steps can prevent domestic oil tank spillages, such as regular inspections and ensuring installation is done by a certified OFTEC technician.
You may also experience pipeline leakages instead of the oil tank itself. In this instance, you should turn off any valves or appliances that the pipelines are connected to to prevent further damage. You should again call a 24/7 emergency number for professional advice.
What to do if you spot a leak?
If you spot that your oil tank is leaking, you want to isolate the spillage and minimise the impact it could have on the environment as quickly as possible. Follow the steps 6 steps outlined below to ensure swift and effective actions
- Clear the area
- Identify the source
- Plug the hole
- Cloth: Plug the hole with some fabric and collect any further drips with a bucket or container below.
- Soap: Rub a bar of soap on the split or hole until it looks like it is sealed – this will act as a temporary barrier preventing more oil from leaking into the environment.
- Prevent the spread
- Contact a Technician
- Contact your insurance provider
First, start by clearing the area of any property (such as garden furniture) and prevent children or pets from entering the site surrounding the oil tank.
Check your tank for signs of physical damage, such as cracks, bulges, splits or apparent signs of corrosion. Look at any visible pipelines or fixtures in case they are loose or damaged and are the source of the spillage.
If you have an oil tank gauge, it is worth looking at this to determine roughly how much oil you might have lost – record this as both the authorities and your insurance company might want this figure.
Prevent the oil from continuing to leak out of the tank by using your oil tank repair kit. If you do not have one of these, there are several temporary alternatives:
It is crucial to stop the spread of the spilt oil further into your property or the environment. Place materials such as sawdust or cat litter in the area of the spillage to contain the spill. You must dispose of these materials safely to avoid further contamination.
Once you have contained the spillage, you must contact an OFTEC Certified technician to begin the removal, or repair or replacement of your compromised oil tank.
Our 24/7 emergency hotline ensures that all concerns are responded to efficiently and promptly within 2-3 hours.
Finally, contact your insurance provider with a record of events, such as your prevention actions, an estimate of oil lost, and the company that is repairing. Now, you can get a complete and accurate breakdown of costs your provider will cover.
Below is a general breakdown of what most insurance policies cover and what is excluded.
What will my Home Insurance actually cover?
Home insurance typically covers the expenses of replacing lost oil and repairing any damage caused to your home’s structure due to an oil spill from a domestic oil heating system. However, it does not cover the expenses of environmental investigation and clean-up that may arise if the oil spill contaminates your land or the surface or groundwater within it. If the oil spill affects neighbouring land, water, or property, the third-party liability coverage provided by home insurance policies may have restrictions.
We strongly recommend contacting your insurers to inquire about the type of coverage you have for cleaning up an oil leak or spill. Pollution and contamination incidents may sometimes be entirely excluded, but more likely, they are included with financial limits and coverage restrictions. Some policies cover sudden damage instead of a gradual leak due to wear and tear or lack of maintenance. It is essential to check this to avoid any uncertainties or unexpected financial burdens in case of an unfortunate incident.
How can I prevent an oil tank leak?
As previously mentioned, some leakages can be down to poor installation, manufacturing mishaps or random incidents. Despite this, there are several steps you can take to avoid gradual leaks:
- Get regular inspections from an OFTEC technician.
- Practice good maintenance, such as cleaning your tank to avoid sludge build-up.
- Install an oil tank gauge to monitor your fuel usage.
- Check your oil tank for physical abnormalities, including bulges or cracks.
If you suspect your oil tank is leaking, follow the steps outlined above and contact an OFTEC technician to utilise their emergency service to get your spillage sorted swiftly and effectively.
