Heating Service Overfills Oil Tank

February 3, 2014

I have a homeowners claim that is insured with ISO form HO 03 04 91.

The cause of loss is an oil spill resulting from overfill by home heating oil delivery. The oil truck was unloading oil and overfilled the tank. There was about a five-gallon spill from the top of the tank located in the finished basement. The asbestos floor tile will need to be removed, along with other interior finishes. There was oil leaking through the slab and now under it so that there is oil in the soil under the basement. The carrier denied the claim based on the pollutant exclusion 2, e. (5), “unless caused by a peril insured against in Coverage C named peril.” I feel that there is a case to be made for a vehicle loss.

Illinois Subscriber

You are correct, the loss was caused by a vehicle and should be covered. The vehicle peril in the homeowners form is one of the broadest perils in the industry—it has no restrictions or exclusions attached to it. The oil could not have been there had it not been for the vehicle, so the vehicle is the cause of loss.