Most homeowners are unaware of their lack of coverage for leaking oil tanks until the problem unfolds. Oil tanks have a great potential for large spills that can damage your home, yard, the environment and your wallet. Most insurers will cover damage to third-parties and if the fuel contaminates any groundwater, depending on your specific agreement. However, due to the vast amount of money, time and labor required to remedy and disinfect, it may very well exceed your policy limit. If you're concerned that your provider may not even include third-parties in this circumstance, check to see if your policy contains the provision of "pollution exclusion."

It is crucial that you protect yourself from such a huge blow. Be mindful of these ways from HometownInsurance.com to reduce your potential loss in the event of an oil leak:

• Ask your realtor or local environmental protection agency if you have an underground oil tank (if your neighbors have them, you probably will as well).
• Observe whether your furnace is using more fuel than usual during different weather conditions.
• Have your tank inspected annually if it is 10 years of age or more (by soil sampling or visual inspection by a licensed contractor).
• If you have a leak, contact an environmental consultant or contractor immediately.
• Report any groundwater contamination to your local authority.

If you're currently looking into buying homeowners insurance, ask your agent to give you a quote for a policy that will provide coverage for  tank leakage claims. Fundy Mutual covers the loss or damage to your home and personal property caused by the sudden and accidental escape of fuel from a permanently installed domestic fuel tank on the insured premises or from an apparatus and pipes that are part of a heating unit for the insured home.