Massachusetts Lawmakers Consider Mandating Home Heating Oil Spill Insurance

In Massachusetts, homeowners face significant financial risk from home heating oil spills, as standard homeowners insurance policies typically exclude coverage for cleanup costs, which can reach hundreds of thousands of dollars.

Affected residents, like Kathleen Murray of North Attleborough, have testified before lawmakers about the severe financial impact of these spills, emphasizing the lack of mandatory insurance coverage for such environmental hazards.

Current legislation proposes requiring insurers to cover home heating oil spill remediation to protect homeowners from potentially devastating expenses. Despite a 2010 law mandating insurers to offer an optional coverage rider, awareness and uptake remain low, leaving many homeowners uninsured against oil leaks. Insurance industry representatives express concern over the proposed legislation, citing issues with distinguishing between first- and third-party damages and the absence of mandatory oil tank maintenance and inspection standards.

They advocate for improved risk mitigation measures, such as requiring secondary containment tanks, and support increased agent disclosure regarding available insurance riders. Lawmakers emphasize the need for proactive consumer protection measures and legislative solutions to address this ongoing coverage gap and financial exposure faced by homeowners using oil heat.