Oil Tank Insurance - Accidental release of petroleum

Boiler Talk

This product is offered by our oil provider through a third party here in NJ.  The price of this protection is increasing every year and they only cover you if you stay with oil heat!  What do you know about the best coverage?  Homeowners Insurance is also charging for some coverage.  Has anyone done some serious review of this matter?  How do we fight back about the costs other than switching to gas? 

STEVEusaPA

Need a little more info....

about the terms of the insurance.

1.  Do they price based on age of the tank?

2.  Can you get a discount if the tank is installed per their specifications?

3.  Would they give you discount if you had a double walled tank, and an OSV?

I never offered the insurance because despite what it promises, I doubt it will pay off, and it's a headache to manage.  The last thing I want to do is have to go to court with the homeowner saying, "you said the tank was ok". 

If it were me, I would, if you could, go with #2 & #3, and forego the insurance.

JMO

Boiler Talk

Insurance

I am doing research for someone, so I have more questions than answers.  I haven't read the current policy.  I saw a future policy that the neighbor has with the same company that now has certain exclusions for voluntary tank pulls.  I'm talking about old tanks 40 years or more.



What troubles me is the cost of the neighbor's tank insurance who has the newer version of the policy.  She has a 1000 gallon tank and the full price with all the bells and whistles is going to be $447/year.  Her prior year was about $300.  The person I'm working with pays $275 for a 550 gallon tank.  At these prices it would make sense to pull the tank.  The house just got a new oil boiler, so switching to gas does't make sense yet. 



I know there was a minor overfill 30 years ago so the soil might have oil it in.  That's what scares me, but worse is the neighbor with the 1000 gallon tank had her's replaced because of a leak.  This is a nightmare of costs.