Curren Environmental Blog

Oil Tank Insurance

Posted by David C Sulock on Jan 16, 2018 10:46:11 AM

A bill has been proposed in the New Jersey assembly that will require all homeowner carriers to offer coverage to remove residential USTs (Underground Storage Tanks) and to cover remediation. Assembly bill, No. A437 would require the insurer to get written confirmation from the insured that they are declining the coverage.

What this would mean for homeowner's is that coverage could be obtained for tank removals and remediation.

Heating OIi tank removal - NJ

The bill as proposed is as follows:

A437 SCHAER, BRAMNICK 2

AN ACT concerning homeowners insurance coverage and 1

supplementing Title 17 of the Revised Statutes. 2

3

BE IT ENACTED by the Senate and General Assembly of the State 4

of New Jersey: 5

6

1. a. Every insurer authorized to transact the business of 7

homeowners insurance in this State shall make available as an 8

option for purchase, in every homeowners insurance policy 9

delivered, issued, executed, or renewed in this State on or after the 10

effective date of this act, coverage for: 11

(1) removal of a leaking heating oil tank from the homeowner’s 12

property; and 13

(2) remediation of damage caused by the discharge of heating 14

oil from the homeowner’s leaking tank or any piping, fuel supply 15

line, equipment or system connected to the tank to: 16

(a) the homeowner’s property, including any impact on soil, 17

indoor air, groundwater or surface water; and 18

(b) a third party’s property, including but not limited to nearby 19

or adjoining property, or groundwater or surface water. 20

b. The commissioner shall establish by regulation the amounts 21

of coverage per occurrence and the amounts of any deductible per 22

claim or policy period for policies offered pursuant to this section. 23

c. If a homeowner declines the option to purchase coverage 24

offered pursuant to subsections a. and b. of this section, the insurer 25

shall obtain a written waiver of the coverage, signed by the 26

homeowner, whose signature shall be notarized by a notary public. 27

d. For purposes of this act, “heating oil tank” means a liquid 28

fuel tank in which heating oil is stored and from which heating oil 29

is delivered or pumped through a fuel supply line to an oil burner, 30

whether the tank is located within a dwelling or other structure, 31

underground, or outdoors. 32

e. This section shall not apply to abandoned, closed, or out of 33

service heating oil tanks. 34

35

2. This act shall take effect on the first day of the sixth month 36

next following the date of enactment. 37

38

39

STATEMENT 40

41

This bill requires homeowners insurance companies to make 42

available as an option for purchase, in every homeowners insurance 43

policy delivered, issued, executed, or renewed in this State on or 44

after the effective date of the bill, coverage for certain leaking 45

heating oil tanks. 46

The bill requires that this coverage be offered for: 47

A437 SCHAER, BRAMNICK 3

 

(1) removal of a leaking heating oil tank from the homeowner’s 1

property; and 2

(2) remediation of damage caused by the discharge of heating 3

oil from the homeowner’s leaking tank or any piping, fuel supply 4

line, equipment or system connected to the tank to: 5

 the homeowner’s property, including any impact on soil, 6

indoor air, groundwater or surface water; and 7

 a third party’s property, including but not limited to nearby 8

or adjoining property, or groundwater or surface water. 9

The bill also provides that the Commissioner of Banking and 10

Insurance establish by regulation the amounts of coverage per 11

occurrence and the amount of deductible per claim or policy period 12

for policies issued under the bill. 13

If a homeowner declines the option to purchase coverage offered 14

pursuant to this bill, the insurer shall obtain a written waiver of the 15

coverage signed by the homeowner whose signature shall be 16

notarized by a notary public. The bill shall not apply to abandoned, 17

closed, or out of service heating oil tanks.