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Old 11-15-2009, 11:42 AM
 
3 posts, read 12,320 times
Reputation: 11

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We are going to buy a house with an active oil tank underground.
We did not know this is a serious problem to find homeowner insurance for the property with oil tank.
Two insurance brokers are searching an insurance policy for us, but they also having a hard time.
We are planning to change to gas heating system after we purchase the house. However, if we cannot get the homeowner insurance now, we cannot close the deal.
Does anyone know any insurance company who writes a new policy for the house with underground oil tank?
Or it is just impossible?
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Old 11-15-2009, 11:56 AM
 
24,843 posts, read 31,241,247 times
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Quote:
Originally Posted by fumtak View Post
We are going to buy a house with an active oil tank underground.
We did not know this is a serious problem to find homeowner insurance for the property with oil tank.
Two insurance brokers are searching an insurance policy for us, but they also having a hard time.
We are planning to change to gas heating system after we purchase the house. However, if we cannot get the homeowner insurance now, we cannot close the deal.
Does anyone know any insurance company who writes a new policy for the house with underground oil tank?
Or it is just impossible?
Don't close the deal until it is out and OK-ed by the powers that be in your state.
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Old 11-15-2009, 12:09 PM
 
9,807 posts, read 12,896,672 times
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Quote:
Originally Posted by Driller1 View Post
Don't close the deal until it is out and OK-ed by the powers that be in your state.
I agree.

Buying any property with underground fuel tanks is very risky.
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Old 11-15-2009, 02:58 PM
 
20,793 posts, read 52,354,094 times
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Quote:
Originally Posted by marmac View Post
I agree.

Buying any property with underground fuel tanks is very risky.
I agree. We looked at buying a house that had an underground oil tank and we discovered that we would have to remove the tank via EPA guidelines and have all the soil tested and so on and so on and so on...we didn't buy the house as if you missed crossing one 't" in the process you could be fined for polluting the soil and what not.
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Old 11-15-2009, 04:30 PM
 
1,644 posts, read 4,012,679 times
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Quote:
Originally Posted by golfgal View Post
I agree. We looked at buying a house that had an underground oil tank and we discovered that we would have to remove the tank via EPA guidelines and have all the soil tested and so on and so on and so on...we didn't buy the house as if you missed crossing one 't" in the process you could be fined for polluting the soil and what not.
Well-I know many houses in our area that have buried LPG tanks, but I guess the risks there are different ie not related to oil leaking into the underground water systems.
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Old 11-15-2009, 05:29 PM
 
105 posts, read 104,164 times
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Quote:
Originally Posted by susan42 View Post
Well-I know many houses in our area that have buried LPG tanks, but I guess the risks there are different ie not related to oil leaking into the underground water systems.
Buried LPG tanks are fairly new. They used to all be above ground, but recentl technology allows the tanks to be installed underground to improve the looks of the property.
If you purchase a home with an UGT, the buyer must have the tank inspected, and the soil tested around it. If there is a problem, they have to fix it. Any new oil tanks must be installed above ground. Escrow doesn't close until all the paperwork on the tank in in.
If the tank passes, and you close escrow and want to replace the system, it doesn't cost a lot to have the tank removed. It only gets expensive if the tank was leaking, which we, by now, have established it wasn't..!
To legally remove a non leaking tank will be under $1000, including all paperwork required by the government. Another few grand to replace the furnace with LPG, and you're ready for winter...
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Old 11-15-2009, 05:31 PM
 
3 posts, read 12,320 times
Reputation: 11
Default insurance for the house with underground oil tank

Thank you for the comments.
But my question is not the risk that the oil tank might have.
I would like to know if there is an insurance company who writes a homeowner insurance policy for us to buy the house with the tank.
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Old 11-15-2009, 05:34 PM
 
105 posts, read 104,164 times
Reputation: 63
OOPs..! Boy did I screw up..! Just re-read my post... I meant to say the sellar is responsible to have the tank and the ground inspected, and they are responsible to make any neccessary repairs. The buyer doesn't get involved until after everything about the tank is legal....
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Old 11-15-2009, 05:40 PM
 
105 posts, read 104,164 times
Reputation: 63
Quote:
Originally Posted by fumtak View Post
Thank you for the comments.
But my question is not the risk that the oil tank might have.
I would like to know if there is an insurance company who writes a homeowner insurance policy for us to buy the house with the tank.
We had no trouble buying insurance for our home that had an UGT for eight years before we removed it and installed a natural gas furnace.
Insurance was never an issue. I just looked, and I have Safco. Has never been a question about the tank. We removed it two years ago to upgrade the system, and never have to worry about a leak ever again...
My Ins guy is just the local guy down on Main Street, I can't imagine you having a problem....? I never had to look....
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Old 11-15-2009, 06:05 PM
 
3 posts, read 12,320 times
Reputation: 11
Default That was our plan, too

Quote:
Originally Posted by Ginagirl View Post
We had no trouble buying insurance for our home that had an UGT for eight years before we removed it and installed a natural gas furnace.
Insurance was never an issue. I just looked, and I have Safco. Has never been a question about the tank. We removed it two years ago to upgrade the system, and never have to worry about a leak ever again...
My Ins guy is just the local guy down on Main Street, I can't imagine you having a problem....? I never had to look....
Because the house itself is in a good condition, buying the house now and switching to gas heating system in a couple of years was our plan. Eight years ago, insurance might not an issue, but it is an issue now.

If insurance brokers cannot find any home owner insurance, the only way left is that the seller removes the oil tank. The cost may be almost covered by the State grant. But the seller planned to buy a house with the contingency of selling their house. Our closing date was planned the end of November and the closing date for them was in the middle of December. Moving the underground oil tank to above ground or switching to gas heating system may take much longer than two weeks.
Someone said the whole process will take 6 weeks.

It is fine with us. We can just walk away or wait until the seller fix this problem.
But I would like to know if it is really impossible to find an insurance company so that we can explain this issue to the seller and let them decide what they would like to do.
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