Check Coverage For Heating-Oil Leakage

Q. My furnace runs on heating oil. If the oil storage tank leaked, would I be responsible for the cleanup?

A. Fewer than 1 percent of home heating oil systems cause a leak or spill. However, you are wise to be concerned about your liability. Heating oil can create an environmental hazard.

As storage tanks age, they can develop holes that release heating oil. These leaks sometimes contaminate soil, ground water, surface water and storm sewers and cause vapor problems in nearby buildings. A home heating oil spill or leak could potentially pose a serious financial hardship for a homeowner.

Many homeowner insurance policies cover environmental damage or contamination cleanup. If you heat with oil, check whether your residential insurance policy covers contamination cleanup.

You should also be aware of a new program in Washington State established by the Heating Oil Pollution Liability Protection Act. This program provides insurance coverage in excess of other valid insurance. It protects oil-heated homes, small businesses, churches and schools from some pollution-related liability problems and financial hardship. Coverage does not apply to unused heating oil tanks.

When other insurance options are exhausted, this program provides pollution-related liability coverage for active, in-use heating oil tanks; applies to tanks located underground, above the ground or in basements and covers cleanup costs and third-party damages up to $60,000 per incident.

However, damages above that amount, legal fees, and the cost of repairing or replacing the tank must be borne by the homeowner.

The insurance program is paid for by heating oil dealers and began operating in January.

For more information, call the Washington State Pollution Liability Insurance Agency at (800) 822-3905.

Detecting leaks and spills

Leaks and spills can pollute wells and streams, and the vapors can make you or your children sick. Leakage is usually discovered when ground water seeps into the tank. Because a tank pumps from the bottom to feed the furnace, a high water content at the bottom prevents the furnace from operating.

Leaks may also be detected when removing underground tanks, when vapors or heating oil seep into basements, or when a furnace seems to be using more fuel than usual.

You should report the leak to the Washington State Department of Ecology at 456-2926 if any of the following conditions are present:

Heating oil has reached adjoining properties.

Leakage has caused vapor problems in nearby buildings.

Heating oil has pooled on the surface of the ground.

Leakage has caused extensive soil contamination.

If leaking heating oil has reached surface waters, such as creeks, lakes, rivers or storm sewers, call Emergency Management’s statewide 24-hour line at (800) 258-5990.

Contact the Department of Ecology at 456-2926 for two helpful publications: “Residential Heating Oil Tanks” (R-TC-92-117) and “Hazardous Waste Considerations in Real Estate Transactions” (R-TC-92-115).

To learn more about using your oil furnace efficiently, call the Washington State Energy Office’s Energy Hotline, (800) 962-9731, or 324-7980. Ask for the fact sheet “Saving Oil at Home.”

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