The Hidden Risks of Oil Tanks in Your Home

oil tank

This past weekend, as I guided a buyer through an open house, we encountered a surprising scene: all the windows were flung wide open despite it being January. Thankfully, Rhode Island graced us with unusually mild weather that day. However, the reason for the open windows quickly became apparent—the pungent smell of heating oil filled the air. The listing agent disclosed that they had discovered a minor leak in the oil tank. Although the investor who flipped the property should have noted the tank’s apparent age, they were fortunate that it contained only a small amount of oil. This incident underscores a crucial fact: about one out of every three Rhode Island households relies on heating oil as their primary heating source.

When purchasing a home in Rhode Island, buyers must be cognizant of our unique local challenges. Much of our housing stock bears the charm and complexities of age, including potential issues that are not immediately visible, such as oil tanks past their functional lifespan or even undisclosed underground tanks. I recently spoke with Wes from Newton B Washburn LLC, a trusted partner specializing in oil spill cleanups and tank removals. Our conversation revealed significant risks and responsibilities homeowners face with oil tanks. It’s imperative that my clients understand these risks to navigate their home purchases effectively.

Key Takeaways 👉

  1. Insurance Coverage is Rarely Sufficient: Many homeowners are under the impression that their home insurance will cover any damages related to oil spills. However, the reality is quite the opposite. Insurance companies frequently deny claims related to oil tank spills, leaving homeowners to shoulder hefty cleanup costs. For example, a homeowner in Woonsocket is currently facing over $100,000 in expenses to manage a 200-gallon spill, including the need to lift the house to remove contaminated flooring.
  2. Neighborly Troubles: Wes told me about another homeowner in Warwick who experienced a spill of 150 gallons from a ruptured tank, only to find out that the remediation would extend to their neighbor’s property as well. Again, the insurance company refused to cover the damages.
  3. Tank Longevity and Quality Concerns: According to Wes, the lifespan of oil tanks is typically only about 12 years. Surprisingly, black oil tanks were specifically mentioned as substandard. Additionally, the use of low-quality oil, often sold by discount oil companies, can contribute to premature tank degradation due to contaminants like sludge and water.
  4. The Costs of Replacement: Properly addressing an outdated or malfunctioning oil tank is not cheap but necessary. The recommended replacement is with ROTH tanks, known for their quality, with costs around $3,500.
  5. The Dangers of Unused Tanks: Old, disused oil tanks shouldn’t be left forgotten in your basement. These could be ticking environmental and financial time bombs in your home.

Understanding The Impact

The presence of an oil tank in a home is not just an operational element but a potential liability. Some homeowners may not even be aware of the tank’s condition if it’s obscured behind walls or masked with paint to look newer than it is. It’s crucial for your safety and financial wellbeing to ensure the integrity and up-to-date maintenance of these tanks. Discovering an oil tank in a prospective home doesn’t necessarily mean you should walk away from the purchase. In many areas of Rhode Island, the options for heating are limited to oil, propane, or electric systems. What’s crucial is having a clear understanding of what you’re dealing with. By being aware of the age and condition of an oil tank and ensuring it is monitored and maintained properly, you can manage this aspect of your home effectively. Educating yourself on the necessary upkeep and potential issues will allow you to make informed decisions and keep your home safe and warm without unexpected disruptions.

What You Can Do

If you are unsure about the age or condition of your home’s oil tank, I strongly advise setting up a service call with your oil provider to assess whether it needs to be replaced. Should you find yourself needing to address this issue, do not hesitate to contact me. I can connect you with trusted professionals who specialize in oil tank assessment and replacement, ensuring that you handle this matter with the care and urgency it deserves.

Remember, being proactive about the maintenance of your home’s oil tank can save you from the overwhelming costs and stress of dealing with potential leaks and spills. Let’s ensure your home is safe and sound for your peace of mind.