If your property relies on an oil tank for heating, you’ve probably wondered: does house insurance cover oil tanks? Heating oil tanks are a real asset and a fantastic source of heating for a home, but they can pose serious financial and environmental risks if they leak or fail! So understanding your coverage is essential for protecting your home and budget.
In this guide, we’ll answer key questions like, ‘Does home insurance cover oil tank leaks?’ ‘Does home insurance cover oil tank replacement?’ ‘How can I make sure I’m not left vulnerable?’
Why does heating oil tank coverage matter?
Your trusty heating oil tank is always working hard in the background to keep your home warm. But ignore them for too long, and they can become ticking time bombs. Oil tanks, especially older or underground models, can leak, and this can lead to big problems such as:
- Contaminated soil or groundwater
- Damaged property
- Environmental fines
- Costly cleanups and/or replacements
Oil spills are taken seriously in the UK, and in some cases, you may be liable for cleanup costs on your own land and neighbouring properties. This is why it’s important to understand what your home insurance policy does and doesn’t cover.
So, does house insurance cover oil tanks?
The answer is: not always. Standard buildings and contents insurance policies in the UK do not usually include oil tank coverage by default, especially for underground tanks. However, coverage may be available under certain circumstances:
Above-ground tanks
Some policies may offer limited protection for above-ground tanks, especially if the damage is sudden and accidental. For example, if a burst pipe causes a spill indoors. But does home insurance cover oil tank leaks from slow corrosion or old age? Generally not. Gradual damage is typically excluded.
Underground tanks
Underground oil tanks are usually considered high-risk and are not covered under standard home insurance. Most insurers require a special policy due to the high cost of potential soil contamination and leak detection. Always check with your insurer to confirm what’s included.
Does home insurance cover oil tank leaks?
A key concern is: Does home insurance cover oil tank leaks? Generally, UK policies exclude damage from gradual deterioration. So, if your tank leaks slowly over time due to rust or poor maintenance, your insurer is unlikely to pay out.
You may be covered if the leak is caused by a sudden accident or an insured event, such as storm damage. You may also be covered if you have a specific oil pollution liability add-on or environmental damage cover. Policies vary, so read the small print and clarify exclusions with your insurer.
Does home insurance cover oil tank replacement?
So, does home insurance cover oil tank replacement? If your tank is damaged by an insured event such as a fire or a falling tree, the policy may contribute towards a replacement. If the tank has failed due to rust or lack of maintenance, it’s unlikely to be covered. This is generally considered a maintenance responsibility.
Optional add-ons and additional cover
Some UK insurers offer oil tank and pollution liability cover as an optional extra. This might include:
- Cleaning up oil spills
- Removing and replacing damaged tanks
- Cover for contamination of soil, drains or nearby watercourses
- Legal liability if the leak affects a neighbour’s property
Costs vary, but these add-ons can be cost-effective compared to potential environmental fines and remediation bills.
Protecting yourself
Even with cover in place, prevention is key. Here’s what UK homeowners should do:
- Inspect your tank regularly or have it checked annually by an OFTEC-registered technician
- Use a bunded heating oil tank, especially in environmentally sensitive areas
- Keep records of all servicing, maintenance and installations
- Notify your insurer if you install or replace your tank
- Ensure your tank complies with Building Regulations and Environment Agency guidelines
So, in conclusion, house insurance sometimes covers oil tanks, especially for sudden damage. It can cover oil tank leaks if they are sudden and accidental, not gradual, and it can cover oil tank replacement but only if damage is caused by an insured peril, not wear and tear.
Oil tanks are a vital part of many UK homes, but they come with risks. Make sure your home insurance policy protects you properly. Ask the right questions, add extra cover if needed, and keep your tank in good condition to avoid unpleasant surprises.