[Closed] STWers with oil heating - think you're insured for liability ?

Don’t you have a Bunded tank? If so what’s the worry?

I expect that's a condition of the underwriter so not just your insurance company.

They are all cons.

Don’t you have a Bunded tank? If so what’s the worry?

Ever tested the bund?

Bunded - no, it's an old one that came with the house. The engineer reckons it's in good nick and not in a location that requires bunding, though would replace with bunded if we were getting a new one.

Anyway leaks can occur from pipes as well as the tank.

Don’t you have a Bunded tank? If so what’s the worry?

Because there is more to the system than just the tank, pipes, valves, remediation can cost millions.

What is a "location that doesn't need bunding'?

I think domestic heating oil tanks are double skin so don't require an external bund wall. I might be wrong tho was a lot of years ago (2 years as a field sales rep for UK oil co incl domestic heating). If your heating guy says it's all in good nick then I'd be happy with that.

A friend's neighbour had a leaking oil tank. Their (not the neighbours) garden and ground floor had to be basically dug out and replaced, and they couldn't return to the house for about 9 months due to the fumes. Insurance luckily paid for temporary accomodation and all the repairs up front but the total cost was over £70k apparently.

What is a “location that doesn’t need bunding’?

I think regs only require bunding if within a certain distance of watercourse, or located where the guy on the truck can't see the tank when he turns the tap on.

I work on the other end of domestic oil spills as a specialist contaminated land contractor to the insurance industry.

When they eventually go, costs range from 5k upwards of 100k. Largest I've done was 160k and I had the homeowners in alternative accomodation for 18 months while we pumped the shit out of a principle chalk aquifer, dug out the internal footprint and underpinned half the house with new foundations, before it was fit for them to return.

It's not just tanks either. I see a lot of galvanic corrosion of copper fuel lines laid in contact with mortar/concrete.

Shite OFTEC heating engineers give us a fair amount of work too.

^^^ exactly! Hence recommending we all check with our insurers if they'll cover this without daft exclusions like being on holiday...

...and if somebody finds their insurer does cover this stuff please post up here so I can switch 🙂

Most package home insurers will cover loss of oil provided it's from a single event. A gradual leak would typically be excluded.

What exactly did you ask them?

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What is a “location that doesn’t need bunding’?

I think regs only require bunding if within a certain distance of watercourse, or located where the guy on the truck can’t see the tank when he turns the tap on.

thankfully this isnt true. The tank will either need to be double skinned, or a bund must in place that can accept 110% of tank capacity (you have to allow for rain). The bund must also have a bund pump that discharges to an oily water well or an intercpetor before discharging to the water course.

Also, get rid of copper piping, does nasty stuff to kero and diesel and will end up causing any bio elements (if there) to go rancid and cause depoists, inturn it will fur up your aga/boiler engine etc.

In England there is no universal requirement for domestic oil tanks to be bundled (either double skin tanks or bund pit) in all cases. In many cases it is still allowable under the building regs to install a singe skin tank.

Also copper pipe (preferably plastic coated) will be required in all installations.

AFAIK degradation of the tank is mostly through exposure to sunlight.
So the weakest skin on a double skinned tank is actually the one that is meant to hold the oil in the event of the internal skin failing.

I'm going to call bollocks on this one. What sandwicheater said above is generally 100% true by the way

In the Admiral policy wording there's this exclusion:

5. Pollution or contamination
Any loss, damage or liability arising from pollution or contamination unless caused by:
i. A sudden, unexpected and identifiable incident.
ii. Oil leaking from a domestic oil installation in your home.

So there is cover.

However, there's this exclusion as well

10.Gradual causes
Any loss or damage caused by anything that happens gradually including wear and tear, wet and dry rot, damage due
to exposure to sunlight or atmospheric conditions, due to settlement, or any due to mildew, rust, corrosion, birds,
insects, woodworm, pests or vermin.

I would have thought that this would be the exclusion they might try and use in the event of a gradual leak. I would also reckon that the Ombudsman would not be happy with that as the "oil" cover should specifically talk about sudden incidents v. gradual ones.

Also, if you are on holiday for enough time to make the home unoccupied, another exclusion could kick in but I can't tell that from the policy wording.

Anyway, insurance:
Cheap, good cover, pays claims.
Pick any two...

OK so bunding not always required...

Environmental protection & bunded tanks
It is true that oil spills from domestic tanks are rare, however, they are both damaging and expensive to clean up. It’s best to reduce risk in the first instance. The bunded oil tank regulations illustrate cases where you will be required to install and use a bunded oil tank to provide additional protection.

A bunded tank is simply a tank with a second skin (a ‘bund’). To be compliant the bund must hold 110% of the tank’s capacity, and be impermeable to water and oil (i.e. must not let water/oil in or out).

You will need a bunded tank if you answer yes to ANY of the following.

Is your oil storage tank located in a place where

Oil spills could run into a drain or manhole cover?
The tank vents can’t be seen by the delivery person because the tanks are too far away from where the tanker can park?
It’s within 10 metres of lakes or streams (any inland fresh water or coastline)?
It’s within 50 metres of a potable (drinkable) water source, like a spring, borehole or well?
Oil spills could run over hard ground until it reaches potable water sources, fresh inland water or coastlines?
You’ll also need a bund if your tank can hold more than 3,500 litres of oil in England or if it can hold over 2,500 litres in Scotland. Please see our bunded tanks FAQ for more information on bunded tanks.

Additional recommendations
A typical oil storage tank has a functional life of 20 years. Do not hesitate to replace an ageing tank.

Visually inspect your tank for cracks, leaks or wear every time you fill it.

Make sure your oil tank is inspected by an OFTEC registered technician (including the pipework between the tank and the boiler) at least every 12 months. You may like to schedule this as part of your annual boiler service.

However back to pipework, stainless all the way. Copper is a nonferrous metal and is not good for fuel lines..

I’m going to call bollocks on this one

Wordings change every few months but mine says:

EXCEPTIONS
11) Oil escaping from:
*Any fixed central heating oil tank
*Any domestic heating appliance
While your home is unfurnished or unoccupied.

(this is under contents, where the 3rd party liability cover lives)

I rang them up to confirm whether holiday counts as unoccupied in this context and they confirmed I'm not covered for oil leaks while on holiday.

It's not a new tank btw. If you were installing a new system nowadays you would use a bunded one in a different location, but building regs don't act retrospectively.

Don't go to work. Your house will be unoccupied.

What counts as a holiday.

I'm out visiting friends for a couple of days .....does that mean unoccupied ?

I'll file this under *my cars not parked on the drive while I'm on holiday I best tell the insurance*

Ok I reread the policy. Turns out whoever I spoke to on the phone was a bit clueless, because I have to be away for 45 days for the home to be 'unoccupied'. 😉

Still the following exclusions apply under buildings (not liability)

Loss or damage caused:
*By oil escaping from pipes in garages and outbuildings
*By oil escaping from external pipes that are above ground or pipes that have not been properly lagged

So as the house has an installation with an external pipe above ground I'd better hope no leak from that damages our own house...

(If you think any of this is unlikely: my uncle once had local crims with a grudge against him break into the house and cut his oil pipe indoors. Place wasn't habitable for a year and god knows what cleanup cost.)

Ok I reread the policy. Turns out whoever I spoke to on the phone was a bit clueless,

Buy a better policy from a better company next time.

If you want cover, cancel your policy and follow the advice above. I know nfu cover damage caused by oil leak, for example.

If you think any of this is unlikely: my uncle once had local crims with a grudge against him break into the house and cut his oil pipe indoors.

Yeah so unlikely. Tbh oil boilers stink even room sealed. I wouldn't have one in my house.

Mines lives outside with no internal pipework at all.

Tbh oil boilers stink even room sealed.

I've heard this countless times, but IME, this is only the case when the heating engineer has left slops during a service, or it's not working properly.

Leaving slops is mandatory I'm sure.

Just about every boiler I've experianced in someone's utility or garage stinks.

Domestic oil tanks are exempted from the Oil Storage regulations, hence there is no universal requirement for bunding, whether internal or external. Non-domestic settings are also exempted if the tank is indoors, underground or for storing waste mineral oil.

Oil storage regulations apply to storage of over 3500 litres for domestic, or over 200 if commercial.

Below this threshold, building regs apply. Approved document J specifies the requirements.