The best way to protect your home from a loss and/or damage resulting from an oil spill is to add oil remediation coverage onto your homeowner policy.
“[Oil remediation] is the least expensive coverage you can buy for your home insurance,” said Darlene Ball Personal Lines Account Representative at McGrath Insurance Group. On average, the yearly estimated cost ranges anywhere from $50-100, she said.
Typically, homeowner policies exclude coverage for fuel contamination to personal property, groundwater, and a neighbor’s property. Oil remediation provides a minimum of $50,000 for first-party property (personal property), and $200,000 for third-party liability (clean-up efforts, etc.).
Massachusetts mandates that all insurance carriers are required to offer oil remediation, but in order for homeowners to qualify for coverage, their oil tanks must be in compliance with the law’s regulations. Compliance guidelines include having an enclosed supply line with a continuous non-metallic sleeve, an oil safety shut-off valve, and a tank that is above ground on a masonry floor.
It Could Happen To You
*The following scenario is based on an actual claim handled by the McGrath Insurance Group staff. All private customer information has been left out for the purposes of this article.***
A homeowner is unaware that a gasket in the boiler has failed, causing a mixture of water and oil to leak all over the finished basement. This mixture then absorbs through the finished flooring and into the concrete below. Luckily the homeowner realizes what has happened before the oil mixture reaches the ground, otherwise the damage would have been much worse. To fix the damages, the homeowner has to replace the flooring, sheet rock, walling and support posts.
For more information on oil remediation and oil spills, contact McGrath Insurance Group at 800-342-3859 or www.mcgrathinsurance.com.
*This article is written for informational purposes only and should not be construed as providing legal advice.