Search Site
Menu
Insuring Your Underground Storage Tanks

November 24, 2004

Insuring Your Underground Storage Tanks

by Stuart Lieberman
Realty Times

You would not buy a car and fail to insure it, would you? You would not buy a home and not insure it? Indeed, anything that is expensive to replace needs to be insured.

And in the same light, you should not buy a home with an underground storage tank and not insure the tank against leakage. Why? Because tank leaks can be very expensive. While they often cost tens of thousands of dollars to address, some underground storage tank leaks have cost hundreds of thousands of dollars. And I am talking about residential heating oil tanks, not retail gasoline underground storage tanks.

Yes, it is true that a leaking residential heating oil tank can cost hundreds of thousands of dollars to remediate. It is not usually the case, but all of us in the business have seen this happen.

Which brings me back to the point of this article: You need to make sure that your homeowners insurance policy covers you in the event that you have a leaking tank.

And that is becoming an increasingly difficult task. Many homeowner insurance companies are attempting to exempt leaking underground storage tanks from coverage. You need to read your policy and see whether or not leaking underground tanks, or damage stemming from leaking underground storage tanks, are covered.

I can tell you that homeowner insurance policies are not the easiest thing to read. Have your agent point out the language that ensures coverage if there is a tank leak. If you are not familiar with insurance policy language, let your broker help you. He or she is paid to provide you with this service.

I had a client come to the office who was actually told that he should purchase a certain company’s insurance policy for his home because that company does not exclude coverage for underground storage tanks. But guess what, there was an exclusion in the policy. While that homeowner may have purchased a lawsuit, who wants a lawsuit?

If the insurance company that you use no longer covers underground tanks, see whether a rider can be purchased. Sometimes riders are available just for this kind of coverage and sometimes they are not all that expensive.

And if your company does neither, then look for another company. This is simply too expensive of a risk to go uninsured. Yet, many people are uninsured and do not even have a clue.

Some states allow heating oil retailers to sell products that are designed to address leaking tank problems. Beware that these products can be very limited in scope. They do not usually replace the need to also have homeowners tank insurance. However, they are often inexpensive and provide a nice supplement to a homeowner policy.

Leaking tank problems can be devastating. Usually they are not, but they can be. You need to make sure that you are adequately insured. It is that simple. Ask the right questions and know exactly what you are purchasing.

Our Attorneys

Recent Twitter Posts

  • Newark and Camden receive $400K each to clean up contaminated sites. https://t.co/x3V6AZHkOb
    5 days ago
  • Murphy Administration rejects golf course expansion onto Liberty State Park. https://t.co/cy8lGbz1uJ
    2 weeks ago
  • Preservationists score big win in fight to protect Princeton Battlefield. https://t.co/80vdiYX0GQ
    3 weeks ago
  • Glass recycling plant breaks ground on former quarry land in Sussex County. https://t.co/puNFMPIaOe
    3 weeks ago

Recent Blog Posts

United States Supreme Court Tackles Key Clean Water Act Judicial Review Issue

National Association of Manufacturers v. Department of Defense, et al. 583 U.S. ____ (2018) Decided January 22, 2018 Since the passing of the Clean Water Act in 1972, the definition of “the waters
Read More
United States Supreme Court Tackles Key Clean Water Act Judicial Review Issue

New Jersey Voters to Decide Important State Constitutional Amendment concerning the Environment

On Tuesday, November 7, 2017, New Jersey voters will be asked to decide on a state constitutional amendment regarding the use of natural resource damages collected by the State in
Read More
New Jersey Voters to Decide Important State Constitutional Amendment  concerning the Environment

Appellate Division Case Demonstrates Importance of Carefully Negotiated Escrow Agreements

Real estate transactions involving commercial and residential properties frequently employ the use of escrow agreements to address potential environmental issues.  This practice is widespread in New Jersey and it permits
Read More
Appellate Division Case Demonstrates Importance of Carefully Negotiated Escrow Agreements

NJDEP Updates Soil Remediation Standards for 19 Contaminants

Effective September 18, 2017, new soil remediation standards govern the cleanup of contaminated sites in New Jersey.  The New Jersey Department of Environmental Protection (“NJDEP”) recently updated remedial standards for
Read More
NJDEP Updates Soil Remediation Standards for 19 Contaminants

In the media

  • Gulf Coast Town Center facing foreclosure

    Naples Daily News, September 16, 2015

    Wells Fargo filed a lawsuit Sept. 8 against an affiliate of CBL & Associates, the owners of the decadeold, 1.2 million-square-foot mall in south Fort Myers for a $190.9 million unpaid loan. The center has 94 stores on 204 acres, with such anchors as Super Target, Belk, Best Buy, Dick’s Sporting Goods, Marshalls and Costco...

    Read More
  • Town liable for private company's leaking underground tanks, court rules

    NJ.com Jul 26, 2017

    CRANFORD -- A couple that owned a businesses in town and became sick from leaking underground tanks owned by an adjacent business can sue the township for damages because the tanks were partially ...

    Read More
  1. 1
  2. 2
  3. 3
  4. 4
  5. 5
Contact Our Firm

Quick Contact Form