Homeowners that rely on oil to power their homes’ heating systems should pay attention to the condition of their oil tanks, experts have recommended.
The Insurance Bureau of Canada (IBC) warned that homeowners can be fully responsible for clean-up costs related to an oil spill from their tanks; it can cost hundreds of thousands of dollars to remove spilled oil and to remediate the affected area.
Oil leaks are such a costly problem that even real estate agents have highly recommended homeowners replace their tanks as part of selling a home.
“A lot of people don’t realize the biggest [surprise] right now, if you’re selling a property, chances are that real estate will want you to replace the tank as part of the deal,” Griffiths Heating & Sheet Metal burner mechanic Peter Kennedy told CBC News.
Kennedy warned, however, that the prices of new oil tanks have been increasing in recent years, noting that most replacement tanks can cost upwards of $5,000. Worse, he added that some insurance companies might charge homeowners additional fees if they want to replace their tanks.
“I even found out this morning from a customer that insurance companies would like to have soil samples taken before the pad is poured — and that could run you $1,000, plus a new tank,” the mechanic remarked.
IBC director of consumer & industry relations Rob de Pruis advised that homeowners maintain and inspect their tanks on a regular basis to avoid any type of loss or damage. Pruis also noted that insurance policies do not typically cover the cost of a fuel oil spill on one’s property.
Collin Remillard, the manager of environmental compliance & inspections for the government of Yukon, also cautioned that oil damage insurance can be obtained by homeowners – but they will have to meet a certain requirement.
“Some insurance companies will sell oil damage insurance to your property, but you must have a certified oil tank for that to happen,” the official told CBC News.
