Too few people are aware of the impact that an oil tank can have on their home insurance. In Quebec, it is estimated that approximately 12% of the population still uses oil for heating and that nearly half of the oil tanks still in use are over 25 years old!

When you know the fire and environmental risks associated with this type of fuel, it’s better to be safe than sorry!

Assurances Multi-Risques a donc décidé de vous présenter un article afin de démystifier les impacts que peuvent avoir la possession d’un réservoir au mazout sur votre assurance habitation.

Get our best tips to prevent costly and, above all, polluting accidents!

Oil tank and insurance

First, basic home insurance does not cover damage caused by an oil tank. It is therefore essential to understand that in the event of a tank leak, you risk causing considerable damage to:

your home;
your material possessions;
your land (soil and groundwater);
your neighbors’ homes and land.

We therefore always suggest that our customers who have an oil tank add an endorsement to their home insurance policy. This is the best way to benefit from additional protection.

Increased risks: home insurance

La possession d’un système de chauffage au mazout est un facteur qui augmente les risques de sinistres. En assurance, nous avons un terme pour inclure ces caractéristiques : l’aggravation de risque.

The importance of adding a rider

En assurance, le terme « avenant » fait référence à une garantie additionnelle qui doit être ajoutée à une couverture de base. Vous pouvez en apprendre davantage sur les avenants dans un autre article.

What is important to know about oil heating systems is that it becomes very important to add an endorsement.

Spillage or leakage of heating oil

The endorsement that is strongly recommended to add to your basic coverage is the one for “domestic fuel oil overflow or leakage.”

In general, this amendment will cover:

damage directly caused to the insured property;
the costs incurred for cleaning and decontaminating the soil the replacement of certain plants;
civil liability

This protection would therefore protect you in the event of accidental overflow or fuel oil leakage. Leaks can come from a fixed tank, an appliance, or a supply line connected to a heating system.

NOTE: Installations, tanks, supply lines, or devices that cause the damage are not usually covered by this endorsement.

How to properly maintain your fuel oil tank to avoid problems?

Proper maintenance remains the best way to prevent damage. Just like with your car or your home! Here are a few tips to help you with this:

Replace your tank if it is more than 25 years old.
Install your tank inside a building. This will protect it from the elements (rain, wind, frost, thaw, etc.) and keep it in better condition!;
Stay alert for odors and leaks;
Be on the lookout for signs of corrosion, as it usually doesn’t bode well!
Do not leave your tank empty, even in summer, as this increases the risk of problems related to moisture and corrosion.
Consult a specialist if you are unsure about the condition or age of your tank. They can also ensure that it is properly installed.
If you change your tank, don’t forget to notify your insurance broker; it could lower your premium!

Our best advice for finding an insurer

Dealing with a professional when it comes to fuel oil tanks is often the best solution. Just as regular maintenance is always a good idea.

When it comes to your home insurance, it’s best to contact an independent insurance broker! They will be able to guide you and explain the best coverage options for your situation and needs.

They can also provide you with full details of the “domestic fuel oil spill or leak” endorsement. Finally, they can advise you on all other aspects of your home insurance!