You asked for information about insurance for underground oil tanks.

According to Karen Romero, a homeowner's insurance examiner at the Connecticut Insurance Department, the Department is not aware of any insurance company offering a policy to homeowners that protects against the costs of replacing an underground fuel storage tank or cleaning up any contamination caused by a leaking tank. She noted that most homeowner's policies did not normally cover leaks caused by the normal deterioration of the tank and related piping. Most homeowner's policies explicitly exclude such replacement and remediation costs from coverage with standard wear and tear exclusions and pollution exclusions.

She indicated that some insurance companies might offer a separate homeowners endorsement that provides some limited protection if the escaped fuel caused damage to the residence property or limited liability to someone else's property or health. An example of such an endorsement is the "Property Remediation for Escaped Liquid Fuel and Limited Lead and Escaped Liquid Fuel Liability Coverages”, which Insurance Services Office (ISO) has filed with the Department for its member companies. The endorsement is available with property limit options of $ 10,000, $ 25,000, $ 50,000, $ 100,000 and liability options of $ 50,000, $ 100,000, $ 300,000. Copy attached.

Romero indicated that some fuel oil dealers may be offering fuel tank protection that covers the cost of replacing a leaking underground tank with an above-ground tank and remediation of the soil. But this is not really an insurance policy from the homeowner's point of view. Rather it is a contract with the fuel oil company. The company in turn purchases a commercial insurance policy to cover its potential liability under its contracts with homeowners. But the homeowners do not have any rights regarding this insurance. Their only recourse would be to sue the fuel oil company for breach of contract.

We have enclosed information we gathered from the internet concerning certain fuel tank protection programs that certain companies offer.

GC/JLK: ts