Buried Oil Tanks and Homeowners Insurance in Pennsylvania
Short answer: Don't count on it. Standard homeowners policies may exclude gradual leakage and pollution cleanup1,2, and title insurance covers title defects, not soil contamination2. For a leaking buried home heating oil tank of 3,000 gallons or less, PA DEP's reimbursement program repays eligible cleanup costs up to $4,000 per tank after a $1,000 deductible, while funds last3,4.
What policies often leave out
- Gradual leakage and pollution cleanup may be excluded from standard homeowners policies1,2.
- Title insurance doesn't cover contamination in the soil2.
Where help can come from
| Program | Who it's for | Source |
|---|---|---|
| PA DEP Underground Heating Oil Tank Cleanup Reimbursement | Buried heating oil tanks of 3,000 gal or less; up to $4,000 per tank after a $1,000 deductible; basement and aboveground tanks excluded | 3,4 |
| USTIF Heating Oil Tank Program | Voluntary program for heating oil tanks of 3,000 gallons or more | 5 |
Questions to ask your insurer
- Does my policy exclude pollution or gradual leakage from a heating oil tank?
- Is there an optional oil tank endorsement, and what does it cover?
- Will a sweep report or removal and soil report change my coverage or premium?
The paperwork that answers the question
Sweep results, soil test results, and a removal or closure report1.
Related
Lehigh Valley towns with the most oil-heated homes
Municipalities we cover where at least 30% of occupied homes are heated mainly by fuel oil or kerosene, estimated by the Census6:
| Town | Fuel-oil share | Homes (± margin of error) |
|---|---|---|
| Upper Mount Bethel Township | 55.9% | 1,475 ± 243 |
| Lower Mount Bethel Township | 53.5% | 634 ± 117 |
| Washington Township (Northampton) | 53.2% | 1,030 ± 207 |
| Portland borough | 53.2% | 125 ± 48 |
| Roseto borough | 52.1% | 295 ± 68 |
| Stockertown borough | 50.7% | 149 ± 46 |
| Lehigh Township | 47.0% | 2,021 ± 304 |
| Tatamy borough | 44.0% | 199 ± 51 |
| Walnutport borough | 43.6% | 354 ± 77 |
| Lower Milford Township | 42.4% | 616 ± 132 |
| Plainfield Township | 41.6% | 1,045 ± 282 |
| Coopersburg | 40.3% | 442 ± 96 |
| Wind Gap | 39.9% | 603 ± 142 |
| Bushkill Township | 39.5% | 1,255 ± 210 |
| Pen Argyl | 39.2% | 545 ± 184 |
| Heidelberg Township | 38.8% | 503 ± 118 |
| Washington Township (Lehigh) | 37.5% | 1,020 ± 207 |
| North Whitehall Township | 33.6% | 2,017 ± 298 |
| East Bangor borough | 32.7% | 144 ± 49 |
| Lynn Township | 32.3% | 551 ± 135 |
| Moore Township | 32.2% | 1,113 ± 208 |
| Bangor | 31.7% | 630 ± 197 |
| Williams Township | 31.2% | 818 ± 215 |
| Nazareth | 30.3% | 908 ± 208 |
For comparison: Allentown 14.1%, Easton 8.6%6. These are 5-year survey estimates; small towns have wide margins of error.
FAQ
Does PA DEP require me to remove my home heating oil tank?
No. Pennsylvania's storage tank law doesn't regulate most home heating oil tanks used on the premises: tanks storing heating oil for use where it is stored are excluded, and DEP lists home heating oil tanks as not regulated7,8. Local rules, lenders and buyers may still require action, such as a permit, testing or removal before a sale. Owners usually act because of a sale, a lender, an insurer, or leak risk.
Will an insurer cover a leak that already happened?
Check the specific policy; standard policies may exclude gradual leakage and pollution cleanup1,2. For buried heating oil tanks of 3,000 gallons or less, DEP's reimbursement program is the state option3.
Get a free quote
Tell us where the tank is (basement, side yard, buried, or unknown) and whether you're buying, selling, or refinancing. Allentown Tanks will connect you with a qualified local tank contractor. (215) 434-1322 · Request a quote
Sources
- Kash Mortgage Group, PA buyer guide
- Flagstone, Philadelphia oil tank guide
- PA DEP, Apply for Oil Tank Cleanup Reimbursement
- PA DEP Storage Tanks Financial Assistance (Underground Heating Oil Tank Cleanup Reimbursement Program)
- USTIF Heating Oil Tank Program (voluntary, tanks of 3,000 gallons or more)
- Census ACS 2020–2024 5-year Table B25040 House Heating Fuel, county subdivision geography (table-based summary file)
- Act 32 §103 (UST definition excludes heating oil for consumptive use)
- PA DEP Storage Tank Data ("Home heating oil tanks are not regulated")
- 25 Pa. Code §245.1 definitions
- PA DEP Installer/Inspector Certification (certified company list)
- 68 Pa.C.S. §7303 seller disclosure
- Fannie Mae Selling Guide B4-1.4-08 Environmental Hazards Appraisal Requirements
- Curren Environmental, PA oil tank removal cost
- Harned Durham Energy, heating oil tank removal cost
Sources accessed 2026-10-25 by TANKER Traffic.