For first time homebuyers, oil tank insurance may not appear to be at the top of the list. However, it’s something that one should highly consider if there is an oil tank on the property. Because many home heating oil tanks are often stored and buried underground, many homeowners are unable to detect the early signs of an oil tank leak.
An oil tank leak can occur when petroleum escapes through a small hole from the oil tank and potentially seeps into the soil around it. Leaks are typically caused by the corrosion that occurs between the steel tank and the natural movement of soil. To prevent liability loss, it’s important to have any oil tanks inspected and tested for leaks and properly maintained.
Homeowner Oil Tank Insurance Policies
Many New Jersey homeowner’s insurance companies have taken new approaches in the handling of underground and above ground oil tanks. Homeowner policies have made it so that a homeowner can be charged for having an oil tank on the property and will be unable to give first party coverage. Since oil tanks are being cracked down on in New Jersey, many homeowner policies will not cover anything regarding oil tanks. This is why it’s important to seek out insurance specifically for oil tanks to prevent liability issues.
Oil Tanks Versus Natural Gas
One benefit of obtaining oil tank insurance is that the homeowner can be covered if the oil tank fails and begins leaking. Homeowner policies do not cover leaky oil tanks and thousands of dollars could be ripped away from the homeowner’s pockets. Oil tank insurance can act as a security blanket for those in New Jersey who heat their homes with oil.
Instead of scrapping oil tanks because of possible leaks, one can take advantage of the many benefits oil tanks provide. The average gas furnace lasts only 11-14 years and can be quite costly when it needs to be replaced or fixed. On the other hand, oil tanks can last more than 30 years if they’re properly maintained. The efficiency of oil tanks is also much higher than the average gas appliance, bringing efficiency ratings between 83% and 95%.
Over the past two decades, there has been a lingering myth stating that heating oil is much more expensive than gas, which is simply not the case. Statistics show that out of the last 22 years, heating oil is less expensive than natural gas in most states. Oil is also a renewable fossil fuel and is also known as clean fuel. This option is far more eco-friendly than its gassy counterpart.
Oil Tank Maintenance
To help determine if you have an oil tank leak, you should call your heating oil company to conduct a tank or soil test. We are conveniently located in downtown Toms River and offer our customers around the clock 24/7 emergency service in case problems arise. If you are worried that your oil tank is leaking, contact your heating oil experts at Point Bay Fuel as soon as possible at 732-349-5059.