"The home I am buying is heated with oil. Will this be a problem with my insurance company?"

Some insurance companies have made strict rules when insuring homes with oil tanks on the property. The first thing to consider when buying a home with an oil tank is the age of the oil tank. Most insurance companies look for tanks that are 15 years old or newer and some will allow a tank up to 20 years old depending on the condition. If the tank is older than 15 years you may want to budget the cost of replacing it in the near future.

Most insurance companies don't care if the tank is located in the home or outside, but almost all insurance companies do not want to insure a home with a buried oil tank. Buried oil tanks create a very expensive environmental cleanup if they ever leak.

If you are at all concerned about the condition of an oil tank or the insurability, contact an insurance professional to come and it inspect for you, or have it inspected for safety by a local oil supplier.

-- Greg Lewis, State Farm