Massachusetts Lawmakers Push to Protect Homeowners from Oil Spill Costs

A North Attleboro family, just four years away from paying off their mortgage, got hit with a $400,000 bill after their home heating oil tank sprang a leak, soaking the ground, nearby drains and their sump pump.

Kathleen Murray told a recent meeting of the Massachusetts Legislature's Financial Services Committee that the family's homeowners' insurance policy would not cover the clean-up when 190 gallons of oil leaked from the tank.

State House News Service reported a pair of lawmakers have filed legislation "that would require insurance companies to cover home heating oil spills, which can cost tens of thousands or even hundreds of thousands of dollars to remediate."

A caller to my Wednesday program said it cost him $100,000 to remove an underground oil tank and contaminated soil from his property, discovered by work crews digging a foundation for a new garage a short distance from his house.

Rep. Jeff Roy and Sen. Jake Oliveira have filed (H 1302/S 813) to "help homeowners from going bankrupt," according to a summary of the legislation.

SNHS reported, "The Senate passed similar redrafted legislation last session, but it stalled in the House Ways and Means Committee. The House also gave initial approval to Roy's bill last session."

Attorney Susan Crane told the hearing that a 2010 law required insurers to provide homeowners with a coverage option, but "the legislation hasn't worked." Crane said, "Most homeowners have no idea it is even available, and that would be for less than $100 a year."

Crane added, "Fewer than a fifth of all homeowners using fuel oil have these riders."