By Bob Katzen

This bill would require insurance companies that provide homeowners insurance to include insurance for heating oil releases to their customers. The measure also raises the required minimum coverage provided.

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.

“Under current law, insurers are not mandated to provide coverage for heating oil releases but are only required to make it available to customers that explicitly request it,” said sponsor Rep. Jeff Roy (D-Franklin). “However, most homeowners are unaware that an oil spill is excluded from their base coverage. Most only discover this after they experience a catastrophic spill. In contrast, residential catastrophes stemming from other common forms of energy [like] natural gas and electricity, etc. are covered under typical homeowners’ policies.”

Roy continued, “This means that all insurance payers contribute to paying such claims, regardless of whether they use that form of energy or not including those using home heating oil. My bill addresses this inequity by requiring that coverage be provided automatically to all homeowners and raising coverage limits to keep pace with rising cleanup costs. This small affirmative change will help prevent homeowners from going bankrupt or funding environmental cleanups with their retirement funds, children’s college funds or their life’s savings.”

“This legislation is about ensuring that no family loses their home or savings because of an accident they never saw coming,” said the Senate sponsor of the bill, Sen. Jake Oliveira (D-Ludlow). “[My bill] will work to help prevent homeowners from going bankrupt or funding environmental cleanups by requiring that coverage automatically be provided to all homeowners and raising coverage limits to keep pace with rising cleanup costs.”