Home Buying in 07666>Question Details

Anthony Bert…, Home Buyer in 07666

How sound is oil tank insurance, the property I'm interested in has inground tank that I'm getting tested for?

Asked by Anthony Berthoumieux, 07666 Thu Oct 30, 2008

leaks. If the test comes back clean, is oil tank insurance a good way to go.

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8
Anthony,

You will need to review the policy for the details and exceptions etc. However you should keep this in mind, oil tanks generally are test on the four sides for leakeage, not below the tank.

With that being said it is best to get the tank removed and put above ground and the state has a grant available that covers the cost for this (generally) and then you can ensure there is no leakage below.

Hope this helps!

Cordially,

John W. Davis Jr., VREP
RE/MAX Village Square - Upper Montclair

Direct:973-944-5038
Office: 973-509-2222 x174
Fax: 973-486-2137

john@njpads.com

http://www.njpads.com

Community Information: http://community.njpads.com
Customized Market Information: http://market.njpads.com
Web Reference: http://www.njpads.com
1 vote Thank Flag Link Thu Oct 30, 2008
I am a buyer looking to purchase a home with an active buried tank. Seller has insurance on tank and insurance is transferable. I am being told that in NYS, the seller is not required to remove tank nor pay for testing. The testing would be our responsibility. The tank is old and I would rather it be pulled and replaced with an above ground tank, however the seller is not required to do so and insurance will be voided if it is a voluntary pull of the tank and a leak is found.
I am being told my some to test the tank. If the tank fails then the seller is 100 percent responsible for removal and replacement along with clean up. If the testing passes the test i am left with a ticking time bomb so to speak. This house is everything we wanted and then some and the price is below market value. There is minimal issues on home inspection. The tank seems to be the only issue and a big one at that. I need help in making this decision!!
0 votes Thank Flag Link Fri Oct 19, 2012
We had our tank removed before we finalized the deal on the sale of our home, we had Tank Easy as our insurance and everything went nice and smooth. They even let us transfer the coverage to the new homeowner. We have purchased the insurance for our new home now.
Web Reference: http://www.tankeasyco.com
0 votes Thank Flag Link Tue Nov 24, 2009
Without a doubt, the best thing you can do is have the seller remove the tank (they never want to because they don't want to deal with the consequences or the expense). That is the best way to guarantee not only that there is no leak or contamination, but also that you can resell the house easily if you have to. Most buyers shy away from houses with underground tanks, so when it is time for you to sell, you will lose a substantial pool of buyers and you don't want that. Usually, if you insist, the seller will do it because the seller knows not many people will buy it with the tank in the ground!!
0 votes Thank Flag Link Mon Nov 3, 2008
HAVE SELLER PULL IT! EVEN WITH INSURANCE NO WAY TO KNOW HOW LONG THAT COMPANY WILL BE IN BUSINESS AND IT MAY NOT BE TRANSFERRABLE WHEN YOU GO TO SELL. TESTING IS NO GUARANTEE. AS JOHN STATED THE TESTS DONT SHOW THE ENTIRE PICTURE.
HAVE SELLER PULL IT!!!
0 votes Thank Flag Link Fri Oct 31, 2008
Anthony,

You may want to look into having the tank removed, certified and install an above ground tank if it is feasible.

Janet Larsen
Remax Connection
Sewell, NJ 08080
856-261-6910
Web Reference: http://www.njrealtorjan.com
0 votes Thank Flag Link Thu Oct 30, 2008
It's generally pretty worthless. It has a million loopholes if there is serious contamination. Insurance companies are dropping homes that have underground oil tanks with or without the worthless tank insurance.

I think you need to simply have the seller remove the tank and provide a bona fide closure certificate, or move on to another house. That tank has to come out, not be tested.

You don't want to inherit this problem under any circumstances.

-Marc
Web Reference: http://www.marcpaolella.com
0 votes Thank Flag Link Thu Oct 30, 2008
Check the insurance policy and also check your homeowners policy to be sure you're covered if the tank leaks and contaminates other property.
0 votes Thank Flag Link Thu Oct 30, 2008
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