Elfi McDonald, Real Estate Agent at Stan Smith Realty in Columbia, SC
Homeowners insurance is also difficult to bind with an in-ground oil tank present. Even if you find it, you are likely to be dropped at any time, as most insurers are have dropped, are dropping, or will soon drop this coverage.
Are you working with an attorney? I am surprised that you are even considering this if you are competently represented by a real estate attorney. Most will strongly advise you against purchasing this home.
You should have the sellers remove the tank prior to closing. If they will not remove it, you should find another home without this very serious defect.
You must have the seller remove the tank before you close on the home. You do not want insurance, you want the home without the tank. Are you getting a mortgage? Most lenders will not lend with an underground oil tank.
Also be aware that the State may soon run out of grant money for reimbursement of the removal of an underground oil tank and more importantly the cost of remediation if there is a leak.
Recommend you discuss with your agent and attorney. The difficulty you are having with getting homeowner's insurance that covers the tank is confirmation of how times have changed.
If you are too far along in the transaction for this to be possible, chime back in and we'll try to help you further.
Good luck to you,
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Have the seller's remove the tank. There are so many reasons for this - your insurance policy only being one of the. This has been a "hot" topic for me recently...check the link below.