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Homeowner's guide to:

Heating System Repair

Oil Tank Protection Plans

What is Oil Tank Protection?

Oil tank protection or insurance that covers you if your tank has a leak. Usually, this insurance covers the rupture’s cost no matter the cause.

Oil tank insurance comes by many names, including:

  • Leak protection: Oil tank leaks can be costly and demanding both in terms of labor and money. Insurance gets rid of the monetary hassle and covers the expenses on cleaning the mess.
  • Repair coverage: Oil tanks could warrant repair for a variety of reasons. Whether your tank is above or below ground, repair coverage guarantees that the bill you get from a contractor for fixing the structure of your tank will be covered by the insurance company.
  • Replacement coverage: If the damage to your tank extends beyond the point of repair, oil tank insurance will cover the cost of a new tank. Regardless of the size or positioning of your current tank, you can have its value insured for the price of a similar model in case the need should ever arise.
  • Property coverage: Depending on the terms of a given policy, oil tank insurance can cover the cost of damage inflicted on property adjacent to a leaky oil tank. Moreover, oil tank insurance can cover the cost of cleanup and re-soiling on locations where underground leaks have infected the soil.

How Does Oil Tank Protection Work?

The process of filing an oil tank insurance claim is much the same as with any other insurance policy. When you discover a leak, you report the issue and arrange an inspection to assess the damage. Then, you file your claim and secure your coverage for the repairs in question. First, however, you must choose an insurance plan. Here are the steps:

Just like with any other type of insurance, you file a report after discovering an oil tank leak and have a professional from the insurance company assess the damage. However, before all of that comes choosing a plan itself. There are multiple steps in the process:

  • Choose a plan: Look at the plans for oil leaks offered by your homeowner’s insurance company. Then, choose a plan that makes sense based on the size of your house, your current plan, and the size of your oil tank.
  • Pay a moderate monthly or annual fee: Just like with any other insurance policy, you will have to pay a fee to keep the policy active either monthly or on an annual basis. The fees could be flexible based on your provider.
  • Report any leak or accident to the insurer: First, write your own account of the damage of the tank and how you’ve assessed the severity of the leakage. Then, report the issue as quickly as possible to the proper authorities, including your insurance provider.
  • Contact an oil-tank repair company: Call a trusted tank repair service (could be your oil provider itself). After giving them your rundown on the leak, arrange for them to come and inspect the leak themselves for further action.

Benefits of Oil Tank Protection

Oil tank protection plans can even cover removal

There are a variety of good reasons to get insurance on any aspect of your home, and oil tanks are no exception. Here are several large costs that you could incur without the benefit of oil tank protection.

  • Oil tank repairs: If your tank hasn’t been damaged beyond repair, the insurance company will cover the costs of repairing it. Depending on your policy, this could come in the form of having all expenses paid, or you could pay a small deductible.
  • A new oil tank: If your tank does need to replaced, this leads to a host of new costs. Not only will you have to pay for the cost of a new tank, you will also be on the line for any installation expenses as well as the removal of your old tank. Insurance can go a long way (or even all the way) in covering these expenses.
  • Cleanup of property: Sometimes, an oil tank leak can damage areas outside of the tank itself, including any of your property which might surround the tank. Cleaning this mess could be a hefty financial burden which is considerably lessened through an oil tank protection plan.
  • Replenishment of soil: For some outdoor tanks, a leak could mean nearby soil getting polluted with oil. If the tank is underground, all oil leakage seeps straight into the soil. Replacing the soil is a cost that could be covered under an oil tank protection plan.
  • Property value: If your policy allows, your protection plan might be transferrable to the next occupant of your property. This serves as a selling point for your property that could boost its value when you take it to market. Ask your insurer if this is included in your current plan.

 Ultimately, oil tank protection plans boil down to responsibility on the part of a homeowner. The costs of damage to an oil tank can spiral out of control, and it is comforting to have peace of mind knowing that if you can’t cover them yourself, your insurer will be able to.

Should I get an oil tank protection plan?

Everyone should consider oil tank insurance. However, there are some situations which necessitate oil tank protection more than others.

  • An above-ground tank: Any aboveground oil tank is exposed to the elements, especially moisture from the surrounding air. If the area around it is poorly ventilated, this could lead to corrosion and holes in the tank. Aboveground tanks are also susceptible to natural disasters, which could leave you with the additional costs of replacing a tank along with the cost of repairing any damage to your house. In this case, it would have been wise to invest in oil tank insurance.
  • An underground oil tank: Underground oil tanks aren’t as exposed to natural elements, but could still be damaged by tree roots or saturated soil, which could corrode the tank.

  • An old property: If your home is a half century or more old, the oil tank that comes with it is likely also very old. If you don’t remember installing the tank yourself, it is important to invest in insurance as older tanks have higher proclivities towards disrepair and damage.
  • A tank for a commercial building: If you are operating in a large commercial building with multiple tenants, it is imperative you get insurance. This is because your liability is extremely high – any issues with the tank will affect not only yourself but also any party that leases space in your building.
  • A rarely used tank: If you live in a warmer climate, despite seeing less usage, your tank might actually be more exposed to the damage that occurs from moisture given the humid conditions. If the tank corrodes and eventually leaks, having protection will be a blessing to your wallet, and your peace of mind.