A.P. Reid's Insurance Products:
Personal Property Insurance - Information Bulletins
At A.P. Reid, we consider consumer education to be one of our top priorities. An informed insurance buyer will made educated decisions about their insurance - ensuring that you avoid trouble down the road in the event of a claim. A.P. Reid customers benefit from the important information contained in our series of hundreds of Customer Information Bulletins. Below you will find a selection of these bulletins related to Personal Property Insurance. Check back often as this selection will be updated from time to time.
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Oil Tank Information
How is your oil tank?
$300,000 - That's the price tag for a recent insurance claim under a Homeowners Insurance Policy in Nova Scotia.
That was the cost to cleanup an oil spill from a leaky outdoor domestic oil tank that was probably about 15 years old. This was the cost of the THIRD PARTY DAMAGE. This was insured. The cost to the Homeowner to clean up his own property was not insured. His expense was in addition to the above figure.
Five years ago, this probably would not have been an insurance claim. In fact, the oil leakage might have gone completely unnoticed by anyone but the Homeowner, who would have replaced his oil tank, refilled his new oil tank and carried on... But today, Environmental laws are tough, and the failure to report any known incident of spillage can result in $10,000 fines for the oil companies, the tank companies, your neighbors, anyone!
Some of this damage is insured.
Some of this damage is not insured.
Most Homeowners Policies do cover the Third Party Liability damage, which is the damage done to other people's property - your neighbors or public property located adjacent to your own.
Many Homeowners Policies do cover damage done to your actual building and contents of your home. Some will cover just building damage, others building and contents damage. A few will not cover at all.
Most Homeowners Policies DO NOT cover damage done to your yard, landscaping, backyard stuff, or the costs associated with soil removal, soil cleaning and soil replacing, for soil on your own property.
Because almost every policy provides some coverage - and because the tab for cleanup is so high, insurance companies have no choice but to respond to these new exposures to high claims with rigorous inspection of oil tanks and rules that call for tank replacement when a tank has reached its known lifespan, whether it's leaking today or not
But, it's not just the insurance company who will save money if you replace your tank before a potential leak. You will too. Ultimately in premiums that we all won't have to pay to remove and replace soil on neighboring properties; but in direct damage to your own backyard, which is not insured by your Homeowners Policy.
If your oil tank is 15 years old, or older, it owes you nothing. Have it replaced as soon as it's empty and ready to be refilled. Don't drain your existing tank into a new one. The sludge on the bottom of your oil tank is full of electrolytes that lead to premature rusting, pinholes and eventual leaks.
The laws are tough. Environment Canada has the full weight of the law behind them when they dig up your back yard, remove the soil to a special disposal site and send you the bill, which you will have to pay out of your own pocket. They can also dig up half your neighborhood if they feel your spill has escaped your property onto someone else's. An unnecessary and very expensive liability insurance claim; that will ultimately drive everyone's homeowners insurance premiums skyward.
A. P. Reid Insurance strives to give you the best possible Homeowners Insurance Policy at all times; but more importantly, strives to be sure you know about risks you are taking as a homeowner when objects like rusty oil tanks go unattended.
Call anytime for more details – please.
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