Unveil the Shield: Safeguarding Your Buried Treasure with Underground Oil Tank Insurance

underground oil tank insurance

Are You Protected from Underground Oil Tank Leaks?

Do you have an underground oil tank on your property? If so, you may be at risk of a costly disaster. Underground oil tanks are prone to leaks, which can contaminate the soil and groundwater. This can lead to expensive cleanup costs and legal liability.

Underground oil tanks can leak for several reasons, including:

  • Corrosion: Over time, the metal tank can corrode, creating holes that allow oil to leak out.
  • Wear and tear: The tank can be damaged by tree roots, shifting soil, or other underground forces.
  • Improper installation: If the tank is not installed correctly, it may not be able to withstand the pressure of the soil and oil.
  • Accidental damage: The tank can be damaged by digging, construction, or other activities.

If you have an underground oil tank, you should take steps to protect yourself from a leak. One of the best ways to do this is to purchase underground oil tank insurance.

Underground oil tank insurance can help you cover the costs of:

  • Cleanup: Cleaning up a contaminated site can cost tens of thousands of dollars.
  • Legal liability: If your leak contaminates a neighbor’s property, you could be held liable for the damages.
  • Property damage: A leak can also damage your home or other structures on your property.

Underground oil tank insurance is a relatively inexpensive way to protect yourself from a costly disaster. If you have an underground oil tank, you should consider purchasing a policy.

In summary, underground oil tank insurance can protect you from the financial costs associated with underground oil tank leaks, such as cleanup costs, legal liability, and property damage. If you have an underground oil tank, you should consider purchasing a policy to protect yourself from these risks.

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Underground Oil Tank Insurance: A Comprehensive Guide

Protecting your property and assets from potential risks is essential. Underground oil tanks, commonly used for storing heating oil or other flammable liquids, pose unique risks of environmental contamination and financial liability. Having adequate underground oil tank insurance coverage can provide peace of mind and financial protection.

Understanding Underground Oil Tanks


Underground oil tanks are typically installed beneath the ground, often in residential and commercial properties. These tanks store heating oil, diesel, or other flammable liquids used for heating purposes or backup power generators. Due to their underground placement, they are susceptible to corrosion, leaks, and potential environmental contamination.

Risks Associated with Underground Oil Tanks


1. Environmental Contamination: Leaking underground oil tanks can contaminate soil and groundwater with hazardous substances. This contamination can pose health risks, require costly cleanup, and result in legal liability.

2. Property Damage: Oil spills from leaking tanks can damage property, including surrounding structures, landscaping, and personal belongings.

3. Financial Liability: In case of a leak or contamination, the property owner could face significant financial liability for cleanup costs, legal fees, and potential lawsuits.

Importance of Underground Oil Tank Insurance


Underground oil tank insurance provides crucial protection against the risks associated with underground oil tanks. It not only safeguards property owners from financial losses but also helps ensure compliance with environmental regulations.

Key Elements of Underground Oil Tank Insurance


Underground oil tank insurance policies vary based on the insurance carrier, but typically include the following coverage:

1. Cleanup Costs: Coverage for costs associated with cleaning up oil spills and contaminated soil and groundwater.

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2. Property Damage: Coverage for damage to property caused by oil leaks.

3. Third-Party Liability: Coverage for legal liability if a leak or contamination causes harm to third parties or their property.

4. Regulatory Compliance: Coverage for expenses incurred due to compliance with environmental regulations related to oil tank removal or cleanup.

Factors Influencing Underground Oil Tank Insurance Premiums


The premium for underground oil tank insurance is influenced by several factors, including:

1. Size and Age of the Tank: Larger and older tanks generally pose higher risks and incur higher premiums.

2. Type of Oil Stored: Tanks storing hazardous oils, such as heating oil, typically carry higher premiums than those storing less hazardous liquids.

3. Tank Condition and Maintenance: Well-maintained tanks with proper corrosion protection and regular inspections may qualify for lower premiums.

4. Location of the Tank: Tanks located in areas with higher risks of environmental contamination or natural disasters may incur higher premiums.

Choosing the Right Underground Oil Tank Insurance Policy


Selecting the appropriate underground oil tank insurance policy involves careful consideration of several aspects:

1. Coverage Limits: Ensure that the policy provides adequate coverage for potential cleanup costs, property damage, and liability.

2. Policy Exclusions: Review the policy’s exclusions to understand what risks are not covered.

3. Deductible Amount: Choose a deductible amount that balances affordability and coverage needs.

4. Claims Process: Understand the insurance carrier’s claims process and any specific requirements for filing claims.


Underground oil tank insurance is a valuable protection against the risks associated with underground oil tanks. By having adequate coverage, property owners can safeguard their assets, ensure compliance with environmental regulations, and mitigate financial liability in case of leaks or contamination. It is essential to consult with insurance professionals to assess individual risks and choose the most suitable underground oil tank insurance policy.

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1. Is underground oil tank insurance mandatory?

It is not mandatory in all jurisdictions, but it is highly recommended to protect property owners from potential financial losses and liability.

2. What is the typical cost of underground oil tank insurance?

Premiums vary based on several factors, but the average cost ranges from a few hundred to a few thousand dollars annually.

3. What are the common exclusions in underground oil tank insurance policies?

Common exclusions include pollution caused by intentional acts, contamination from off-site sources, and leaks resulting from improper maintenance.

4. How can I reduce my underground oil tank insurance premiums?

Maintaining the tank properly, storing less hazardous liquids, and installing corrosion protection systems can potentially reduce premiums.

5. What should I do if I suspect a leak or contamination from my underground oil tank?

Contact your insurance carrier immediately and take steps to contain the leak and prevent further contamination.

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