“I need insurance coverage for a heating oil tank.”
4/7/2020: To our customers and partners.
Washington State is experiencing an unprecedented health pandemic due to Covid-19. PLIA, along with all of state government, continues to comply with Governor Inslee’s directives. As PLIA continues business activities during this pandemic, we assure you that our priority is to support the health and safety of our staff, customers, and partners. Thank you for your patience as we adjust to the impacts of this pandemic.
Based on 2020 legislation passage, PLIA is transitioning the Heating Oil Insurance Program to a Loan and Grant Program. After July 1, 2020, PLIA will continue insurance coverage on all existing registrations, but will no longer accept new registrations. All existing policies and registrations in place before July 1, 2020 will continue to be honored.
PLIA’s new Loan and Grant Program will provide financial assistance to heating oil tank owners and operators. The Heating Oil Loan and Grant Program will provide up to $75,000 for heating oil tank owners to upgrade, replace, decommission, or remove heating oil tank systems. The Loan and Grant Program will serve more people with greater flexibility than the current insurance program and allows for funds to be used for infrastructure needs.
PLIA will engage with the public during the rule-making process to ensure customer needs are addressed. We will send out notices by email and postings on this website. The program is planned to begin summer 2020.
How To Apply For Insurance
- There is no cost to you to register.
- You must complete and submit to PLIA The Heating Oil Pollution Liability Insurance Registration Form (pdf) (please read instructions).
- You are registered when PLIA receives your completed registration form.
- You must be registered with PLIA prior to the start of any accidental release in order for the cleanup to be covered.
- When PLIA receives your completed registration form, you will be mailed a confirmation. If you do not receive a confirmation within 14 days please contact PLIA at 1-800-822-3905 or (360) 407-0520.
The Heating Oil Pollution Liability Insurance Program makes pollution liability coverage available for owners of heating oil tanks because:
- Owners are responsible for cleanup of contamination if their tank leaks.
- Pollution coverage is often not available from private insurance companies.
How It Is Funded
The program is funded by a fee that heating oil dealers pay per gallon of heating oil sold. Heating oil is defined as diesel, kerosene or stove oil.
What Is Covered
- Up to $60,000 for cleanup contamination, not covered by other insurance, on your property (and/or a neighboring property).
- The contamination must come from a leak that starts after a heating oil tank is registered with PLIA. The tank may be underground, aboveground, or in a basement.
- The tank must be registered in the current owner’s name.
- Reimbursement up to $1,500 to repair damages on neighboring property (third party coverage) such as landscaping, flooring, painting, etc.
What Is Not Covered
- Leaks from abandoned or decommissioned tanks, or other sources.
- Leaks that start before registering with PLIA.
- Property restoration on your property (first party coverage).
- Removal/repair/replacement of the tank/lines/furnace (not including reimbursement of new tank replacement costs according to RCW 70.149.120).
- Emergency heat restoration.
- Heating oil lost in the release.
How Claims Are Filed
If you suspect a release from your registered heating oil tank, you must contact PLIA at 1-800-822-3905 or (360) 407-0520 to file a claim. You have 30 calendar days from the date the tank is disconnected from the furnace to file a claim.
- PLIA will investigate the claim, which may include taking photos of your property and the failed tank.
- You will hire a contractor authorized to do cleanup under the program from our Heating Oil Service Provider List (pdf).
- All work must be approved by PLIA before the work starts.
Real Estate Transactions
If a registered owner sells the property, or transfers ownership in any way, then the coverage under the Heating Oil Pollution Liability Insurance Program ends.
To avoid any lapse in coverage, the new owner of the property must register within 180 days from the date of the property transfer.
Homeowners may register at any time, however the effective date of the coverage will begin on the date we receive the registration form if more than 180 days has passed from the date ownership changed.
Policy, Statute, and Rules
The Colony Insurance Company provides the Pollution Liability Insurance Policy (pdf) for coverage of the Heating Oil Pollution Liability Insurance Program.