Proguard (oil tank ins) doesn't cover oil tank removal if converting to gas...help! (insurance, house)

[doerayme]

We need to change our ancient heating system this spring/summer and wanted to use this as an opportunity to convert to gas and dig up the underground oil tank. We just found out that Pro-guard (oil tank insurance) won't cover the removal of the oil tank if you are converting to gas (hubby should have read the fine print and I guess we shouldn't have bought a house w/ an underground tank but hindsight is 20/20 as they say).

Has anyone been able to find a way around this? Does anyone have any idea what other protections are in place in case a leak is found and there is thousands of dollars worth of remidiation work that needs to be done? Just wracking my brain on how best to deal with this.

The company we are most likely using to replace the furnance keeps telling us to just have the tank filled but that just seems like a band-aid solution....

Would appreciate any advice on this.

Thanks.

[Obrero]

Originally Posted by doerayme

We need to change our ancient heating system this spring/summer and wanted to use this as an opportunity to convert to gas and dig up the underground oil tank. We just found out that Pro-guard (oil tank insurance) won't cover the removal of the oil tank if you are converting to gas (hubby should have read the fine print and I guess we shouldn't have bought a house w/ an underground tank but hindsight is 20/20 as they say).

Has anyone been able to find a way around this? Does anyone have any idea what other protections are in place in case a leak is found and there is thousands of dollars worth of remidiation work that needs to be done? Just wracking my brain on how best to deal with this.

The company we are most likely using to replace the furnance keeps telling us to just have the tank filled but that just seems like a band-aid solution....

Would appreciate any advice on this.

Thanks.

Well really you only need them if you actually have a leak. If there is no leak you can tell them to beat it after the removal. If there is a leak and you need them to pay for cleanup...you will be sticking with oil.

[doerayme]

If only it were that simple UKOK, before Proguard will cover an underground tank removal, you need to have already installed an above ground tank plus they need to be notified prior to a tank being removed since they make you use only removal contractors approved by them. If we go w/ gas we're on our own IF there's a leak. We had the soil tested before we bought the house but I hear those tests aren't 100% reliable. So still wondering if there are any loopholes around this policy or how other people have funded clean-up when they found a leak...if this could potentially cost us tens of thousands, we might be forced to stick with oil...

[Obrero]

Originally Posted by doerayme

If only it were that simple UKOK, before Proguard will cover an underground tank removal, you need to have already installed an above ground tank plus they need to be notified prior to a tank being removed since they make you use only removal contractors approved by them. If we go w/ gas we're on our own IF there's a leak. We had the soil tested before we bought the house but I hear those tests aren't 100% reliable. So still wondering if there are any loopholes around this policy or how other people have funded clean-up when they found a leak...if this could potentially cost us tens of thousands, we might be forced to stick with oil...

It is that simple. Get a temp above ground tank (say you are doing construction) installed by your oil service co. and follow steps you state above. If you have a leak you will HAVE to keep oil if no leak do whatever you want.

[wileynj]

Originally Posted by doerayme

We need to change our ancient heating system this spring/summer and wanted to use this as an opportunity to convert to gas and dig up the underground oil tank. We just found out that Pro-guard (oil tank insurance) won't cover the removal of the oil tank if you are converting to gas (hubby should have read the fine print and I guess we shouldn't have bought a house w/ an underground tank but hindsight is 20/20 as they say).

Has anyone been able to find a way around this? Does anyone have any idea what other protections are in place in case a leak is found and there is thousands of dollars worth of remidiation work that needs to be done? Just wracking my brain on how best to deal with this.

The company we are most likely using to replace the furnance keeps telling us to just have the tank filled but that just seems like a band-aid solution....

Would appreciate any advice on this.

Thanks.

Proguard is a tank protection "plan" not an "insurance policy" - big difference. They are not regulated by the Dept of Banking and Insurance therefore they can make up their own rules. My advice... do not abandon the tank in place unless it is your only option - i.e. the tank is partially located under a house. And even in that situation, I would take samples as well.

Just a thought.....
If the new tank is going in the same exact location as the old tank... how can you put the new one in first .. perhaps if you tell them that, they will understand and let you take the old one out before the new one goes in .

[Diane Giam]

Originally Posted by wileynj

Hey now! I've already got this forum marked as my territory

That's True, Wiley removes tanks and does remediation. She has been here longer!
Remove the tank, do not abandon it.


Diane G

[actank]

Although Pro Guard does not cover conversions to gas it really does not matter providing you meet the qualifications for NJ grant money. This grant will cover the removal and if there is contamination the clean-up. NJ grant requirements are income $250,000 or less and net worth without residence and pensions cannot exceed $500,000. Companies like my company will pre-qualify you and guarantee you get the grant money if qualified.
[SIZE=3] [/SIZE]

[castorfox]

Proguard is a very specific policy and is not meant to cover tank removals and replacements or remediation of groundwater for that matter, the policy cvers soil remediation only. Many homeowner insurance policies cover remediation from a tank leak when a third party damage has occurred, i.e., groundwater has ben impacted or oil has migrated onto a neighboring property. THE NJDEP also offers grants for removal $1,200.00 and removal/replacement of oil tanks ($3,000.00). Although there is a $250.00 application fee so you get the amount stated but it does cost you a small application fee. The grants also cover remediation of the tank leak.

[actank]

Originally Posted by doerayme

We need to change our ancient heating system this spring/summer and wanted to use this as an opportunity to convert to gas and dig up the underground oil tank. We just found out that Pro-guard (oil tank insurance) won't cover the removal of the oil tank if you are converting to gas (hubby should have read the fine print and I guess we shouldn't have bought a house w/ an underground tank but hindsight is 20/20 as they say).

Has anyone been able to find a way around this? Does anyone have any idea what other protections are in place in case a leak is found and there is thousands of dollars worth of remidiation work that needs to be done? Just wracking my brain on how best to deal with this.

The company we are most likely using to replace the furnance keeps telling us to just have the tank filled but that just seems like a band-aid solution....

Would appreciate any advice on this.

Thanks.

First of all do not just have the tank filled you should remove it. One option you do have is to have soil testing done around the tank and if the soil comes up hot you would contact Proguard about the release. They will per their contract provide remediation and provide an aboveground tank. I believe you will have to stay on oil heat for another year but well worth it. Another option is to first find out if you qualify for the NJ Tank grant program. You can go on-line through the NJDEP web site and try to figure out if you qualify or contact a company like mine that will determine if you qualify. Assuming you qualify for the grant money you could proceed with your original plan because New Jersey has grant money for removal and installation of a new tank. If the tank is found to have leaked the state will under the grant pay for most if not all of the remediation cost. Also a very important thing is for you to hire a "U-hot" contractor for tank removal. These contractors if a clean-up is required can get a "no-further action" letter from the state in less than a month. The state relies on these licensed contractors to close these spills will little state involvement
.

[jayesq]

actank how do i contact your company