Does home insurance cover oil tank leaks

Does Home Insurance Cover Oil Tank Leaks?

Does home insurance cover oil tank leaks? In most cases Yes. However, there are circumstances where an insurance claim for an oil spill may be invalid. Different insurance policies have various levels of coverage, and there may be capped limitations on the amount the insurance company will pay towards an oil spill.

The average cost of cleaning up a domestic oil spill is upwards of £20,000, and this cost can increase if the environment or your neighbours’ property/land is also affected. It is essential to ensure that you have the right insurance coverage in place in case your oil tank ever leaks.

Is your oil tank leaking or have you discovered an oil spill? If you reside in Northern Ireland, contact andrew@removerr.co.uk or call 07434 691 809.

Home Insurance and Oil Spill Claims

Outlined below is an example of home insurance cover provided by AXA insurance in relation to oil leaks. Please refer to your schedule for the specific details of your level of cover, including any overall limits that may apply.

1. Accidental Damage Cover:
If your home insurance policy includes accidental damage cover, you will be protected in the event of an oil leak caused by an accident in your home. This includes sudden and unexpected damage to oil tanks or pipes that results in an oil leak.

2. Trace and Access Cover:
Trace and access cover typically helps cover the cost of locating and accessing the source of an oil leak within your property. This can include the cost of removing and replacing any necessary fixtures or fittings to repair the leak.

3. Oil Contamination Cover:
If your home insurance policy includes oil contamination cover, you will be protected against the costs of cleaning up any oil spill or leak that has contaminated your property or any neighbouring properties. This cover may also extend to any damage caused by the oil leak, such as damage to soil, water sources, or plant life.

Always check with your home insurance provider to see if they cover oil leaks and if there are any limitations on your policy. As stated earlier, the average oil spill claim is £20,000, but it could be much higher.

Who is Responsible for an Oil Leak?

It is the responsibility of property owner storing heating oil on their premises to maintain the oil tank, boiler, and oil lines, as well as to have adequate insurance in place in case of an oil spill. If storing over 2500 litres or if the tank is located within 10m of a water source like a river or stream, a bunded oil tank must be installed.

If you rent a house in Northern Ireland and the oil tank leaks, causing damage to the property you rent and the adjacent neighbour’s property, it is the landlord who is responsible for the oil spill cleanup for both properties.

Oil spills can be incredibly destructive, as once the oil sinks into the ground, it can travel through the water table, which is groundwater that lies between sediments and cracks in rock. If this happens, it is not uncommon for the adjacent properties surrounding the original source of the oil leak to be affected.

Once heating oil seeps into the foundations of a house, the cost to rectify increases considerably, with the owners of the property having to move out.

Does home insurance cover oil tank leaks

Excavation of contaminated soil

How to Start an Oil Spill Claim?

If your oil tank is leaking and you need to file a claim with your insurance company, you have two options:

Option 1: Contact Removerr directly for oil spill cleanup at 07434 691 809 or email andrew@removerr.co.uk. We work with most insurance companies in Northern Ireland.

Option 2: Contact your insurance company directly. The process involves the following steps:

1) An initial assessment is booked, known as a walk-over, with a registered company in your area.
2) Tests are conducted to determine the extent of the oil spill, and a report is submitted to your insurance company.
3) Additional information may be required depending on the claim.
4) If your claim is approved, the contractor who conducted the assessment can begin the remediation work.
5) Upon completion of the work, a final report is submitted to your insurance company for the release of funds.

The timeframe from the initial assessment to completion of the work can vary from weeks to months depending on the severity of the damage.

Oil Spill Emergency Response NI

Removerr offers oil tank services throughout Northern Ireland. In the event of an oil leak or spill, we provide emergency oil spill response services. Our team will visit your location and drain the leaking tank, transferring the oil into a holding tank to prevent further environmental damage.

After stopping the source of the leak, we will assess the extent of the damage and can liaise with your insurance company if necessary. I hope this article has helped answer the question, does home insurance cover oil tank leaks.

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