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Patrick Ginnelly & Co. Property Claims Assessors Patrick Ginnelly & Co. Property Claims Assessors

Oil Tank Leak and Escape of Oil Claims

Torn sheets of metal roofing and broken timber lie in a yard beside a house
Illustrative images only.

A heating oil leak can harm your building, your outbuildings and the ground around them. An oil tank leak can also reach a drain, a stream or a well. If you are facing an oil spill claim, this page explains what the claim can involve and how a Loss Assessor can help.

Common causes and signs

Oil leaks have several common causes:

  • A split, rusted or worn tank.
  • A failed pipe, often an underground pipe between the tank and the house.
  • Loose or worn fittings, valves and filters.
  • Damage to the tank or pipe from frost, a vehicle or a fall.

Look out for these signs:

  • A smell of oil in or near the building.
  • Staining on walls, floors or soil.
  • Dead patches of grass.
  • Oil in a drain, ditch or stream.
  • The tank gauge dropping quicker than it should.
  • A boiler that cuts out.

What the claim can cover?

Depending on your policy, an oil claim can include:

  • Stopping the leak and making emergency repairs.
  • Specialist clean-up of the building and the ground.
  • Repair or replacement of damaged floors, walls and finishes.
  • A specialist report on the cause and the spread of the oil.
  • In some policies, the cost of alternative accommodation.

Policies treat oil differently. Some cover the lost oil, the tank or the ground, and some do not. Read the wording on oil, gradual leaks and ground contamination.

What to do first?

  • Make the area safe. If you can do it safely, turn off the supply at the tank. If you smell strong fumes, leave the building and call the emergency services. Do not light a fire or use switches.
  • Keep oil away from drains, streams and wells. Do not wash oil into a drain.
  • Take photographs and notes of the tank, the pipe, the damage and the ground.
  • Keep receipts for emergency work.
  • Keep damaged items, and the damaged tank or pipe if it is safe to do so, until your insurer has seen them.
  • Read your policy for notice conditions. Tell your insurer as soon as you can, and within any time limit in your policy.

Where claims get difficult

Insurers look closely at oil claims. The usual points of dispute are:

  • Whether the leak was sudden or gradual.
  • Whether the tank or pipe was old or worn.
  • Whether the policy covers the ground, the clean-up and the specialist work.
  • How far the oil has spread.

Ground contamination can cost far more than the tank itself. The scope of the clean-up can grow as the work goes on. It helps to agree the scope early and to keep clear records. We cannot promise the outcome of any claim.

How we help

As Loss Assessors, we act for you. We report the claim to your insurer and meet the loss adjuster at your property. We put together the detailed costs of the clean-up and the repairs. We deal with your insurer until the claim is settled.

Tell us what happened. Contact us.