Common Questions Home Buyers Have About Above Ground Oil Tanks

Do you need advice about a home or real estate property with an oil tank? Many older homes, condos, business properties, and apartments in New York have above ground oil tanks. This is a common feature that you will see in the entire New England area. What does this mean to you as a homebuyer? However, they may pose environmental hazards to your property. This article will help you understand the potential problems associated with having an above ground tank and whether or not oil tank removal in NY is right for you.

Question: I'm from California and I'm wondering why above ground oil tanks were ever even installed here in New York. It seems so unnecessary.

Answer: At one point, they were installed to help residents save money on heating, gas, and other utility costs. In many areas of New York state, heating oil from a tank was the most common way of heating homes, condos, and apartments until the 1970s. However, most tanks have been abandoned by now. The danger is that when buildings converted over to electricity or natural gas, there weren't any state laws or safety regulations in place that required a property owner to cover or clean up above ground or buried tanks to prevent serious environmental hazards from the oil and sludge leaking into the ground and contaminating the water supply and surrounding land.

Question: I want to purchase an old Colonial style house with an above ground oil tank in New Jersey. How do I know if there aren't any other buried tanks on the premises?

Answer: That's a good question. You'll need to have a specialist check out the situation. About 30 years ago, when the first oil tanks installed underground started leaking, homeowners were advised to just shut them off and install an above ground oil tank. If your home is over 30 years old, and you have an above ground tank, you should have the property checked for the possibility of one or more buried tanks. In cases like these, the underground tank may have been leaking for 50 or more years.

Question: Can I purchase insurance that will cover potential clean up problems or oil tank removal in the future?

Answer: Yes. But basic homeowner insurance policies don't cover clean up or tank removal (which usually costs $9,000 for a clean up and more for removal). There are many policies in New York that include an oil tank removal NY add on policy.