Will your oil tank leak be covered by your insurance
by Admin
Posted on 28-03-2023 09:16 AM
Home insurance typically covers oil spills.
Pcla can advise if your home insurance policy covers an oil spill or leak. An oil spill or a leak from your oil tank can be dangerous to the environment and to human health. If you have an oil spill at home, you should have the area examined and cleaned up by a professional.
Is the land and water at your premises included within the definition of insured property in your policy? if so, for what value or limit? occasionally they are not. Oil and fuel tanks and supply pipework are often located outside, if they leak or fail and pollute land or water (including groundwater) within your grounds, would the clean-up costs be covered and if so, under what circumstances? the costs of tracing and accessing an oil leak from a fixed oil tank used for heating purposes is often restricted to those that happen within the insured premises. Leaks from fuel tanks can be excluded. https://www.pdla.ie/oil-leak-damage
A question that we often get asked by our clients; “is oil leak damage covered by insurance”, the answer can either be yes and no…depending on the individual circumstances surrounding the loss and damage. Whilst many home insurance policies state they will cover damage caused by escape of oil or leaks, nevertheless they also state that they exclude any damage caused by wear and tear, faulty materials, faulty design or faulty workmanship. So, if you suffer an oil leak in your home or property, your insurers can make a very strong argument for refusing to pay for the damage and repair costs under their clearly stated exclusions of your policy.
How to establish if you are properly covered by your insurance
Is an oil spill covered by my insurance?
it is important to check your insurance policy carefully as many have conditions relating to oil leaks and oil spills. While you may be covered for loss of fuel due to an oil leak, you may not be covered for and oil spill that has occurred as a result of lack of maintenance. Each insurance company will have its own set of conditions for cover.
What damage can an oil leak cause?
an oil leak is a very serious issue and can cause a lot of damage. Much of this damage is unseen and affects the structure of the house and the health of the occupants.
To help, oil spill insurance services has compiled a list of questions that you can send to your home insurers to clarify the cover and restrictions of your own policy. Visit oil spill insurance services to download the letter.