A Leaking Oil Tank Could Sink Your Financial Boat

Oil tanks can fail and produce costly oil leaks for more reasons than you might think. Water in the tank, not external rust, is the most common cause of a leaking oil tank. Other culprits include oil fill, venting, supply piping errors, corrosive soil conditions, manufacturing defects, weather conditions and delivery of bad oil that is contaminated with water. If an underground tank at a property is 15-20 years old, the chances of a leak are high and you need to have the tank tested. Even if the tank is not leaking now and has not already leaked, you should plan on replacing it. Indoor tanks are equally prone to failure.

I awoke to a noxious odor one Sunday morning only to discover that my indoor oil tank had sprung a leak. After corking the hole and contacting my oil company, I came to learn about the procedures that would be required to clean up the spill. This was not going to be a simple process as the Department of Environmental Conservation in my state had specific protocol for cleaning up oil spills. Failure to comply could result in having our house condemned. I also came to learn that my insurance company, like most, did not cover damages due to leaking oil tanks. Talk about a rude awakening!

I then began the tortuous process of cleaning up the spill and restoring my house to an inhabitable condition. I also decided to convert to gas in the restoration process since there is no way of ever knowing how close your tank might be to sprouting a leak. This has been known to occur with newer oil tanks as well.

While the clean-up and restoration cost a bundle, it could have been even worse. Had I been on vacation and the oil seeped deep into the ground, a massive excavation would have been required to remove the oil. If it had leaked onto our neighbors' or town's properties, this would have been our responsibility as well.

Why would anyone ever want to be exposed to such a risk? Even if your insurer covers such damages today, they have the right to exclude this from coverage in the future. My advice is to cut your ties and convert to gas. A leaking oil tank could sink your financial boat - hook, line and sinker. Don't leave yourself exposed to this environmental liability.

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