Thousands of aging underground oil tanks are buried beneath the lawns of homeowners on the eastern end of Long Island. These tanks, used to store home heating oil, can lead to serious problems for the unsuspecting homeowner. If not replaced, these tanks will eventually corrode and leak, especially those tanks located near the shore where the water table is high, and salt water mixes with fresh. If an underground storage tank begins to leak, the homeowner could be required to spend thousands of dollars to clean up the spill.
While you might think that the homeowners' insurer would pay for the clean-up costs, think again. Homeowners' insurance companies are increasingly reluctant to indemnify their insureds for environmental damages. Typically, they cite exclusions in their policies for their refusal to pay, even though these exclusions were not explained to the homeowner when they purchased the policy and the homeowner is unaware of their existence.
