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Oil Tank Care

Without proper insurance, if your oil tank spills or leaks you could be 100% responsible for cleanup costs – which average $250,000 to $500,000 but can be even more. As a property owner, you are responsible for the year-round maintenance of this potential environmental hazard.

Oil is used for home heating in some regions in Canada, specifically in more rural areas. Leaks and spills from a home oil tank are dangerous and costly. After an oil tank spill, the average cost for cleanup is $250,000 to more than $500,000 and includes:

Replacing the tank and supply lines

Removing contaminated soil from around your home

Replacing your home’s foundation.

If oil spills or leaks on your property, you could be responsible for all costs unless you have the proper insurance. As a property owner, you – not the oil company – are responsible for maintaining the oil tank.

Oil Tanks and Your Home Insurance

Typically, a home insurance policy does not cover the loss or damage to your property resulting from an oil spill. However, the liability coverage provided by your home insurance policy may cover, up to the purchased monetary limit, the liability you incur when an unintentional oil spill on your property contaminates a neighbour’s property. Intentional acts are not covered under home insurance liability coverage.

What To Consider When Buying an Oil Tank

Home oil tanks hold about 1,000 litres and are available with plastic liners to help reduce internal corrosion and with valves for draining water.

A tank’s lifespan depends on its location and exposure to the elements, the grade of fuel used and maintenance. NEVER buy a used tank. When buying a tank, look for:

Certification by the Standards Council of Canada or the Underwriters’ Laboratories of Canada

Metal pipe connections

One that automatically prevents the accumulation of water by allowing condensation to be drawn off with oil entering the furnace

4 Tips for Installing an Oil Tank

Ask your supplier about a certified installer for your new oil tank. Never transfer oil from an old to a new tank – it could contaminate the new tank with water-laden sludge. Your tank should be installed:

At least 15 metres (50 feet) from a well

On non-combustible footing, such as a concrete slab or patio stones

Where it can be easily inspected

Away from a wall to help prevent it from rusting.

5 Maintenance Tips

Regularly inspect your tank for signs of corrosion, such as rust or shifting.

Ask your oil distributor to do a visual inspection of your tank if you are uncertain about its age or condition.

Protect your tank lines from foot traffic.

Make sure your tank, lines and connections – and the area around them – are kept clear of snow and ice. Your fuel oil company may provide shielding devices.

Keep your roof clear of snow and ice that could fall on your tank.

As with any question you may have about your home insurance policy, the brokers and CSRs at DPM Insurance Group are always happy to take the time to explain your coverage, help you mitigate the risks of a potential claim, and guide you through the process should the need arise to make a claim. At DPM Insurance Group, your security is our responsibility.

Source: Insurance Bureau of Canada


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Blenheim Office

24 Marlborough St. N., Box 479
Blenheim, ON N0P1A0

Phone: 519-676-8159
Fax: 519-676-0020

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250 St. Clair St.
Chatham, ON N7L 3J9

Phone: 519-352-4343
Toll Free: 1-800-561-4949
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Essex Office

29 Talbot St. N, Box 69
Essex, ON N8M 2Y1

Phone: 519-776-6457
Fax: 519-776-7400

Harrow Office

65 King St. W., Box 790
Harrow, ON N0R 1G0

Phone: 519-738-2277
Fax: 519-738-2279

Tilbury Office

59 Mill St. E, Box 1239
Tilbury, ON N0P 2L0

Phone: 519-682-0202
Fax: 519-682-2391

Wallaceburg Office

403 Wellington St.
Wallaceburg, ON N8A 2Y2

Phone: 519-627-1777

DPM Insurance is a BrokerLink company. The BrokerLink companies are subsidiaries of Intact Financial Corporation (TSX: IFC)