Does Homeowners Insurance Cover Oil Tank Removal in NJ?
There is no single answer, because policies differ. What the state tells homeowners to do is simple: ask before you start.
What the NJDEP advises
In its homeowner FAQ the department says it is beneficial to determine whether your insurance covers the tank removal or any potential third-party impact. It suggests contacting the insurance company before removing the tank, and updating the insurer if the tank is found to be leaking. The department notes that some insurance companies will cover an investigation to determine whether a discharge has affected neighboring properties.
That is all the state says. It does not promise that any policy covers removal or cleanup.
Questions to ask your insurer
- Does my policy cover tank removal, or only damage from a sudden event?
- Does it cover cleanup of oil in the soil on my property?
- Does it cover claims by neighbors if oil moves onto their land, and the cost of investigating that?
- Do I need to notify you before I start work, or when a tank is discovered?
- Do you require particular contractors or documents?
- Is there an exclusion for underground tanks or pollution?
Get answers in writing
A phone call is not a policy. Ask for the answer by email, or ask your agent to point to the policy language.
Notify early
If there is any sign of a leak, tell the insurer promptly. The NJDEP suggests providing updates as appropriate if the tank is found to be leaking.
Other help
If you are looking for state funding, read State Help for Oil Tank Cleanup: the UST Fund, which explains why waiting times can be long.
Keep records
Photos, contracts, test results and the No Further Action letter help with any claim and with a later sale.
Before you file anything
Find out what is actually in the ground. A sweep and, if needed, an exploratory dig tell you whether there is a tank to worry about. Call Oil Tank Scan NJ at 732-673-1584.
