Leakage or overflow of domestic fuel oil is not included automatically in your home insurance policy but for as little as $3 a month* you can protect yourself with oil damage insurance.

Domestic fuel oil is a pollutant that can cause significant property and environmental damage. As a result, property owners are exposed to considerable financial loss should their oil tank or fuel lines leak or overflow.

The best solution is to manage the risk through regular inspections and equipment replacement when appropriate but even the best risk management practices may not protect you fully for all possibilities.

For those unforeseen situations, Aviva offers oil damage insurance for Leakage and Overflow of Domestic Fuel Oil.

This coverage is designed to pay related expenses as the result of a sudden and accidental leakage or overflow from a tank or supply line.

  • The coverage limit is $100,000 and can include property damage including soil decontamination and Personal Liability the insured becomes legally obligated to pay as a result.
  • *The cost of the coverage is $3 per month for inside oil tanks (under 25 years old) or $9 per month for outside tanks (under 20 years old).

The cost of the coverage ranges from $30 to $95 depending on if the tank is inside or outside and whether the coverage includes the Personal Liability.

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How to prevent accidents:

Regular inspection of your heating oil tank is important because:

  • Failure to do so could cost you a lot of money;
  • You will be helping to protect the environment;
  • It is your legal responsibility.

Proper care and maintenance of your fuel oil tank, lines and furnace can reduce the chance of an oil spill and costly environmental problems. Fuel oil spills in residential areas can:

  • contaminate drinking water, groundwater and soil;
  • cause odour and health problems in the home; and
  • contaminate storm water drains, sewers, drainage ditches and surface water.

The most serious rust damage to oil tanks occurs from the inside out, due to annual condensation of water collecting on the bottom of the tank. To prevent internal corrosion, oil tanks should be drained of accumulated water at least once a year.

Early fall is a convenient time to remove the water from your oil tank; the same time as the pre-winter servicing of your furnace.

Note: the following are not eligible:

  • Any risk with an underground tank,
  • Inside tanks 25 years or older,
  • Outside tanks 20 years or older.

Did You Know …?

One litre of leaked oil can contaminate 1 million litres of drinking water. A pinhole in your tank can empty 1,000 litres of oil. Cleanup of an oil spill can involve everything from replacing the tank and supply lines and removing contaminated soil, to replacing your home’s foundation. Theft of oil and copper lines is on the rise. Speak with your oil/tank supplier about preventative measures to take to ensure your oil tank is not a target for thieves.

All heating oil tanks must comply with national construction standards (CAN 4-S602). This is usually indicated on the tank via a metal plate indicating it has ULC (Underwriters’ Laboratories of Canada), UL (Underwriters’ Laboratories [USA]) or CSA (Canadian Standards Association) certification. DO NOT paint over this plate! Your insurance company may require proof of this certification before they will provide homeowner coverage. Heating oil tanks must be installed in accordance with CAN/CSA B139-04 Installation Code for Oil Burning Equipment. If in doubt, consult a Certified Oil Burner Mechanic.

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