Homeowner’s Insurance – Escaped Liquid Fuel
What is Escaped Liquid Fuel?
Escaped liquid fuel. It sounds bad, and it is. It refers to heating oil that leaks from home heating systems. Recent news reports have highlighted the significant costs and disruptions associated with cleanup and repairs. This is true, particularly, if oil leaks into the soil, ground water, or a neighboring property.
Escaped Liquid Fuel and Homeowner’s Insurance
Massachusetts law requires homeowners with oil heating systems to have leak-prevention features. These are either a safety valve or an oil supply line with a protective sleeve. The law also mandates that insurance companies that write homeowner policies offer coverage for oil leaks.
The burden of cleaning up even a minor leak or spill makes it a coverage worth considering. Few insurance companies include it in their base policies. Many have related exclusions in their policies. Therefore, this optional coverage needs to be purchased and added by endorsement.
Adding Coverage to Your Policy
Massachusetts has its own fuel oil remediation endorsement form. It includes property and liability coverage. It specifies minimum coverage limits, but higher limits may be available. They vary among insurance companies, though, so we recommend you review your needs and options with your agent. The additional premium is typically nominal.
So, please let us know if you have any questions about escaped liquid fuel and your homeowner’s insurance coverage. Our team of insurance pros are ready to help.