By Bob Katzen

The House gave initial approval to a bill that would mandate that insurance companies in the Bay State automatically provide residential owners with insurance for damage to home and property caused by a leak in a residential liquid fuel tank or home fuel supply lines. Each policy would provide this coverage and homeowners can either keep the coverage or opt out.

Current law requires that companies make coverage available for owners but supporters say that while coverage is available, there are many documented cases of companies not making owners aware that the coverage is available. They said this often results in homeowners being unaware they do not have insurance coverage until after they experience a liquid fuel tank leak.

Supporters said that some 100 homeowners experience an oil leak in Massachusetts every year. They noted that leaks can incur costly damage to the residence itself, but under Massachusetts law owners are responsible for environmental cleanup, which can rise to $100,000 or more, to dispose of contaminated soil and mitigate the spread in surrounding areas.

“A constituent who had a leaking oil tank, unaware of available leak insurance, had to deplete their savings for a leaking basement oil tank cleanup,” said sponsor Rep. Steve Howitt (R-Seekonk). Howitt explained that the opt out option, as opposed to the current opt in option, would protect more consumers.”

The Senate has already approved a different version of the bill.