Spills can cause extensive damage to buildings, land, groundwater, and neighbouring properties. Report the spill safely.
Our team has dug into spills and compiled information from TSSA’s fuel-oil spill advisory, Ontario’s spill-reporting guidance, TSSA’s current fuel-oil requirements page, and the Ontario Petroleum Contractors Association’s spill-claim guidance. We’ve covered what to do if you think you have a leak, what counts as an insurable loss and requirements for reporting a spill, registering your underground storage tanks, and what to expect if you’re purchasing a home with an oil system or applying/renewing home insurance in Ontario.
Does Home Insurance Cover Oil Tank Leaks?
Never assume coverage for oil tank leaks; ask your insurer for written confirmation before a loss.
Coverage varies by insurer, tank, cause, terms, limits, exclusions and deductibles and may be offered through the underlying policy or through an escape-of-fuel-oil endorsement. A leaking oil tank or fuel line may not necessarily be covered. Damage to the dwelling, personal property, cleanup, additional living expense and third-party liability coverage have their own terms, limits, exclusions and deductibles.
General articles and insurance brochures are no substitute for specific confirmation of coverage, so always confirm coverage in writing from your insurer before a loss.
If You Smell Oil Or Find A Leak
If the situation poses an immediate danger, such as a fire, being overcome by the vapour, or becoming ill, get out of the area. If needed, call 911, making sure you’re in a safe place before dialling. Don’t return until emergency responders declare the evacuated area safe.
Shut off your heating system if it’s safe to do so. Stop the flow/delivery of the fuel if your fuel supplier or TSSA-registered fuel-oil contractor tells you to do so.
Don’t try to manage the situation yourself. Call your fuel supplier or a TSSA-registered fuel-oil contractor and ask them to confirm/contain the spill. This isn’t a situation where towels, kitty litter and a drip pan are acceptable. A professional needs to assess and address the situation.
Do not personally dig up soil, move fuel, take things apart, or discard contaminated material.
Disturbing the scene can lead to additional contamination.
Immediately call Ontario’s Spills Action Centre to report the spill: 1-800-268-6060. Follow instructions given by emergency services and/or your municipality. Also, you should notify your insurer as soon as possible.
If it’s safe to do so, take pictures of your tank, piping/appliance and any areas affected by the spill.
Take notes on how much fuel may be missing or has been delivered, when your tank was last filled, details about your tank, any instructions given to you by a fuel-oil contractor, and whether there’s a well/water supply in the area.
How Can I Get Coverage For An Oil Tank?
| Claim component | Possible treatment | What to verify |
|---|---|---|
| Building and belongings | Resulting physical damage may be insured | Cause, deductible, form and any fuel-oil endorsement |
| Soil or site cleanup | May have a separate grant, limit or exclusion | Own-site cleanup, testing, excavation, disposal and restoration |
| Neighbour or third party | Liability coverage may respond if you are legally liable | Defence costs, damages, pollution exclusion and sublimit |
| Tank, line or failed component | This is often treated as the worn/defective item as opposed to resulting damage. | Repair, removal and replacement wording |
| Groundwater or public infrastructure | Can be restricted or excluded | Environmental impairment wording and government orders |
| Temporary accommodation | May apply after an insured loss if your home is uninhabitable. | Approval, time and dollar limit |
Eligibility and oil-tank endorsement limits can depend on tank age, installation, construction, location, inspections and contractor certification.
Why Oil-Heated Homes Need An Individual Insurance Check
Ask your insurer about any impact to coverage or premiums for having an oil heating system, including:
- Details about your oil tank, including its location, age, what it’s made of, service history and any history of spills/leaks.
- Get in writing: Any special conditions of coverage; any limitations on coverage, including limits on liability or cleanup; increased deductibles; exclusions, such as removal/replacement of the tank.
Our analysis of thousands of home insurance quotes collected by MyChoice since the beginning of 2026 shows that oil heating systems are rare, appearing in fewer than 1% of quotes. With so few quotes, it’s not possible to identify a standard price effect or see any geographical trends in oil heat prevalence.
Read More: See How an Oil Tank Can Affect High-Risk Home Insurance
How To Prevent An Oil Tank Leak?
Assess Your Tank’s Age
Identify the age of the tank. Locate the manufacturer’s plate, installation records or contractor reports. Check for corrosion and have it reviewed if the age is unknown, it shows signs of deterioration, or your insurer has an age-based rule.
Perform Routine Inspections
Keep records of inspections, deliveries, repairs, and servicing.
Inspect the tank regularly for dents, bulging, rust, wet spots, staining, odour, and/or darkened soil around or directly underneath your tank. Also, periodically inspect connections, vents, exposed lines, filters, valves, and gauges for signs of damage, leakage, and/or movement.
Note the fuel level on the tank’s gauge. If the tank’s gauge doesn’t correspond with deliveries, have a professional assess the tank.
Service your tank regularly, following the maintenance schedule recommended by your contractor and tank manufacturer.
Get A Professional To Inspect And Clean Your Tank
Use a TSSA-registered fuel-oil contractor for work on the fuel-oil system.
Ask for a written report detailing the tank’s condition.
Ask for proof of their registration.
Understanding Regulations On Oil Tanks
In Ontario, only underground fuel-oil tanks must be registered.
However, whether above-ground, below-ground, or indoors, regulations apply to fuel-oil tanks, including spill response, servicing, installation, alteration, maintenance, removal, etc. Report any known fuel spill to the Spills Action Centre immediately; do not wait for authorization from your insurer.
Before Buying A Home With Oil Heat
Read More: See When a Home Insurance Inspection May Be Needed