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Do you need oil tank insurance?

eric_2 Member Posts: 148
I am currently going through a claim with ProGuard. Currently they are fighting with my homeowners insurance on who pays. One thing to keep in mind is ground water. If you have a high water table, they will try to say it then falls under your homeowner insurance. Not trying to trash the company, in my opinion all insurance companies fall under the same catagory when it comes time for a claim. Quick to take your money, but when it comes time to file a claim........
My best piece of first hand experience advice is to remove any buried tank you have and put a new above ground tank. My old tank looked like swiss cheese when they removed it and it "passed" inspection a few short years ago. Best of luck.


  • alex_11
    alex_11 Member Posts: 35

    What is the general opinion?Do you need oil tank insurance.I have an underground tank and I am lingering on to covering it with proguard?What is the general opinion?
  • S Ebels
    S Ebels Member Posts: 2,322

    I wouldn't have any kind of underground storage tank for oil. That being said, how old is the tank? Do you have any idea at all what shape it's in?

    The horror stories about failed underground tanks are to numerous to mention. In fact, someone just asked a question here about replacing a 50 year old tank in his basement a few days ago. The general consensus was to not even think twice about it. Just do it!

    You'll need ALL the help you can get if there's ever a problem.
  • Leo
    Leo Member Posts: 768
    I'm Suprised

    I'd be suprised that they would cover an underground tank. If they do, read the disclaimers carefully. If they cover anything it would probably be the tank only and not any surrounding damage or contamination.

  • Yep, what he said


    I was thinking the same thing when I read his post.

    Do as Leo said and look very carefully at what that tank insurance covers. Also, talk to your HO insurance agent and find out what your HO coverage does or does not cover.

    If it a very comprehensive tank plan, and fills the gaps that your HO insurance may not cover, then with an underground tank OF ANY AGE, it would be a good idea.

    If it only covers your tank itself, and your tank is an older tank, replace it now with preferably an AST.

    Just my $00.02

    Ed Carey
  • Perry_2
    Perry_2 Member Posts: 381
    A decade or so back - the only policy available

    that covered anything but just the value of the tank (depreciated valuye at that) was a policy that required the underground tank to be a modern double wall tank that was in an underground vault with an oil spill sump and appropriate alarms (properely maintianed). I found this out when the place I was working at was looking at replacing its underground oil tank - and we inquired about insurance. Thus, we could insure the new tank only if we built an underground vault, with sealed sumps, alarms, etc - and inspected and maintained the tank, vault, and sump alarms, etc.

    Given the tank was only for vehicle fuel it was decided to cut a deal with the local gas station for "Fleet" fuel prices and not pay the cost of construction of an underground vault, with a tank in it.

    Fortunately, the existing tank was not leaking when it was pulled out.

    I can't immagine anyone offering a policy different than that. AS for the other policies - In my opinion the depreciated value of the tank is not worth insuring...

  • fsk
    fsk Member Posts: 31

    There is a company called proguard.

    It offer 100K coverage for underground residential tanks.

    What it will cover is a replacement of the tank and any clean up on the insureds property.

    The deductible is $1K.

    Does any one have any idea/good/bad/exp about the claim service on this insurer?

    Thank you.
  • Jamie Hall
    Jamie Hall Member Posts: 21,105
    no opinion on company

    but, my friend, if that puppy leaks and you need a cleanup job, $100K is just about going to cover the investigation, never mind the cleanup, at least here in Connecticut. Assuming that you were executing due vigilance (you do do a complete balance on the tank contents at least monthly, don't you?) and all that sort of good stuff...

    I would love to have an underground tank. There is no way I can afford one, not in today's regulatory and litigation climate.
    Br. Jamie, osb
    Building superintendent/caretaker, 7200 sq. ft. historic house museum with dependencies in New England
  • fsk
    fsk Member Posts: 31

    "Assuming that you were executing due vigilance (you do do a complete balance on the tank contents at least monthly, don't you?) and all that sort of good stuff... "

    Can you point out what I need to do to keep an eye on the leaks?I can measure the oil using a stick but I dont know how much I am consuming...are there any telltale signs of leaks..any info is highlt appreciated..thank you..
  • Mike Barth
    Mike Barth Member Posts: 5
    tank insurance

    A month ago our 4000 gallon above ground waste oil tank leaked (we heat our shop with waste oil)Luckily the tank was not full as all of the oil in the tank leaked out into a small stream. The fire department prevented the oil from getting very far down stream. Once I arrived on scene the PA DEP pretty much let me handle the clean up myself under their supervision. Even so it was a freaking NIGHTMARE that I wouldn't wish on my worst enemy.Total costs to date are over $12,000.00 My business insurance policy only paid up to $10,000 for this type of a loss. I didn't even know I had any type of coverage for this before the accident. I had always worried about an oil spill and thought I had all contingencies covered. (I hadn't considered vandalism unfortunately) If the DEP would have forced me to hire an enviromental company to do the clean up my costs would probably have been over 50 K. I can tell you this experience was an eye opener for me and we plan on educating our customers on the hazards of oil tanks above ground or under ground. I don't think here in PA our regulations are quite as strict (yet) regarding fuel storage as we routinely install single wall underground tanks.
  • fsk
    fsk Member Posts: 31

    Thanks fr your reply.
    Would like to have more details..on how the claim from the start was handled by pro guard.
    Any issues you had form the get go..any and all details will be highly appreciated.
    Thank you.
  • Jamie Hall
    Jamie Hall Member Posts: 21,105

    Assuming that what we are talking about is a plain underground tank -- no vault, no double walls... (which, incidentally, I would advise!).

    The principle is simple: measure -- accurately -- all the oil delivered to your tank. Measure, equally accurately (we're talking less than a quart here), the oil your burner(s) use (yes, you're going to need a flow meter at the burner(s). Measure equally accurately the amount of oil in your tank at the beginning of the period and at the end of the period. Then the total of the oil in the tank at the beginning, plus the amount delivered, minus the amount used, should equal, plus or minus a quart or two, the amount in the tank at the end of the period.

    If it doesn't, you have a problem.
    Br. Jamie, osb
    Building superintendent/caretaker, 7200 sq. ft. historic house museum with dependencies in New England
  • fsk
    fsk Member Posts: 31

    Where do you buy the flow meter and how do you install it.
    Any help directions will be appreciated.
This discussion has been closed.