Oil heating is a common and dependable way to heat many homes, especially in rural areas and older properties. From an insurance point of view, oil heating systems are not considered dangerous. However, they do require a bit more attention because of what can happen if something goes wrong.
Why Insurance Companies Pay Closer Attention
The main concern isn’t how the system works day to day. The issue is the risk of an oil leak. Even a small leak can cause serious damage to a home, nearby property, or the environment. Cleaning up an oil spill can be expensive and complicated, which is why insurance companies pay attention to the condition of your oil tank when assessing your home insurance.
Learn more about home insurance basics in our blog article: What is Home Insurance? Everything You Need to Know.
Why Maintenance Is So Important
A newer, well-maintained oil heating system is usually not a problem for insurance. Issues tend to arise when oil tanks are old, worn out, or haven’t been properly cared for. Regular inspections, fixing small problems early, and replacing tanks before they reach the end of their lifespan all help reduce the risk of leaks and make it easier to keep insurance coverage in place.
Indoor vs. Outdoor Oil Tanks
Both indoor and outdoor oil tanks can be insured, but insurers want to see that they’re properly protected:
- Indoor tanks should have safeguards like drip trays to catch leaks and prevent damage inside the home.
- Outdoor tanks should be securely installed, protected from weather and accidental impact, and placed on a solid, stable foundation.
Safety Features Make a Difference
Insurance companies like to see safety measures in place, such as drip trays, protective barriers, proper shut-off valves, and regular servicing by a professional. These steps lower the chance of a leak and help limit damage if a problem does occur.
Always Tell Your Insurer About Your Heating System
It’s important to let your insurance provider know if your home uses oil heating. This helps ensure your policy accurately reflects your home, allows the insurance company to properly assess and protect your property, and avoids potential issues if you ever need to make a claim.
Read our blog article to learn more about the factors that affect home insurance costs.
The Bottom Line
Oil heating systems are generally safe when they’re properly installed, updated, and maintained. Insurance concerns usually come down to the age of the tank, how it was installed, and whether it’s been looked after.
Staying on top of maintenance and upgrades helps protect your home, your insurance coverage, and your peace of mind.
The Bottom Line
If you’re thinking about how oil heating could affect your coverage, it’s a good time to take another look at your policy or ask us for a quote. We can help you understand your options and find the best coverage for your home. call us at 705-325-4461 and speak with one of our friendly and professional brokers.