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.
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
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BE IT ENACTED by the Senate and General Assembly of the State 4
of New Jersey: 5
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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
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2. This act shall take effect on the first day of the sixth month 36
next following the date of enactment. 37
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STATEMENT 40
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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.