Guide to domestic oils spills and home insurance

What are my legal responsibilities for oil spills? What will my home insurance policy cover?

Home insurance policies provide some cover for loss of oil, tracing oil leaks and damage caused to your land and property as a result of a spill. Clean up costs for oil spills can be very high, particularly if oil contaminates water ways, and insurance companies will only cover the cost in limited circumstances. We review standard clauses commonly found in home insurance policies and compare with Home Spill oil insurance. Our best advice is to maintain the tank or fit a new one if it’s in poor condition and/or non-complaint. If that time has come, try our Guide to fitted oil tank costsand Guide to oil tank regulations

Your duties as an oil tank owner

Oftec engineers do not have powers to cut off your heating system due to serious defects on your oil tank, although they may refuse to work on your system unless you do. In regulatory terms there is nothing to force you replacing or upgrading your tank installation.

However, anyone who stores heating oil is obliged to ensure that the substance will not release into the environment. As an oil tank owner, you are directly responsible for the clean-up costs of any spills that occur and any consequential damage.

Your home insurance policy provides some cover, although it is very limited for oil spills and contamination. The most effective steps are preventative.

Preventative measures

As with all insurance policies, home insurance and oil spill insurance really only cover the accidental, the unexpected and the hard to mitigate. You can reduce the risk of a claim by making sure your tank is complaint and secured. New integrally bunded tanks are the best way to avoid oil spills altogether, as the outer container will catch all of the oil in the inner container should it leak.

Providing oil supply pipes are continuous, i.e. without joins, the only weak points are the connections either end, both of which are easy to access and monitor.

In all cases, an annual inspection by an Oftec registered engineer will identify any weaknesses and recommend remedial and maintenance works.

For more on the current requirements for oil tanks, try our Guide to Oil Tank Regulations