BLOG: Escape of Oil: a viscous issue

With energy prices increasing almost daily in the UK and beyond, few of us can afford to lose oil meant to heat our homes over winter. However, more serious is the potential cost to the environment following an oil leak from a domestic tank, and the associated clean-up costs which can reach hundreds of thousands of pounds in severe cases.

OFTEC, the Oil Firing Technical Association estimates that there are around 3,000 oil spill pollution incidents reported to environmental regulators each year around the UK and warns that even the smallest of leaks can lead to serious pollution problems.

iprism has seen an increase in the average cost of an escape of oil claim, with claims costs that have exceeded £1m, costs that could be preventable if the homeowner makes sure that they are storing their oil safely at home.

Questionab-oil storage…

In response to the increase in average claims costs and growing environmental concerns, we’ve updated our question set for Private Clients. We want to help our brokers to better understand the risks presented by domestic oil tanks and be able to offer their clients the best advice in mitigating these. It also gives us the information we need to ensure we can accurately assess and quote for the risk.

Is the oil tank inspected annually and maintained in a good state of repair?
Homeowners with oil tanks should have them checked and serviced at least once a year by an OFTEC technician, this should include any associated underground pipework. This will ensure they are being kept in good condition and any defects are noticed as early as possible to prevent leaks.

What year was the oil tank installed?
Older tanks are usually of metal construction and are therefore subject to corrosion. Newer tanks are more durable and are usually made of plastic, these are normally more secure but can degrade when subjected to sunlight. An oil tank typically has an average life span of 15 years, if your client has a tank older than this then it would be prudent of them to consider replacing both the tank and associated pipework.

As average living costs increase, it can be tempting for homeowners to try and replace older tanks cheaply, by buying second-hand or attempting potentially dangerous DIY installations.  OFTEC has noted reports of this are on the rise, and warned that though a cheap deal may be initially tempting, homeowners could be in for years of increased costs if the tanks fail - a true ‘sump’ cost…

Was the oil tank installed by an OFTEC-registered technician?
OFTEC is a 'competent persons scheme' which recognises installers who are approved to install oil, solid fuel, and renewable heating equipment and to maintain oil and solid fuel systems. Almost 10,000 technicians are registered with OFTEC's renowned UKAS accredited registration schemes.

Again, it is important to ensure that clients aren’t attempting installation themselves or using an unaccredited tradesman.

Is the oil tank double-skinned?
Newer plastic tanks are normally double skinned. A double skinned or double bunded tank has two layers, so is a ‘tank within a tank’. The two layers provide secure containment of chemicals and liquids, along with helping to protect against an oil leak in the case of a tank failure. An oil tank must be double skinned by law if it holds more than 3,500 litres of oil in England or over 2,500 litres in Scotland.

What is the capacity of the tank in litres?
Domestic oil tanks come in a range of sizes depending on the individual client's needs and property size. The average domestic tank capacity usually ranges between 1,000 litres to 1,350 litres. The larger the tank, the greater the possible damage following an escape of oil incident.

Does the oil tank have a vent pipe that is visible from the fill point?
Vent pipes are used to let an oil tank breathe. The oil inside a tank expands and contracts due to temperature change and the vent pipe allows the tank to do this safely without damage. Air is also expelled through the vent when the tank is filled.

We believe it’s important to share this information with our partners to reduce the risk of underinsurance if a costly oil leak does occur, and to ensure we have all the information we need to understand the risk being presented to us.

If you have any questions about clients with domestic oil tanks, please contact our Private Clients Team for more information and support.