There is nothing wrong with heating a home with oil. However, Insurance companies have policies which may affect your home purchase. Many forget that Mortgage Companies require purchasers to get house insurance. So, purchasers trying to buy a home that has insurance issues may have difficulties getting financing. For that reason, it is important to know if the home you are selling or buying has any insurance issues. Oil Tanks are an insurance issue. Most insurance companies will insure a home with an oil tank but the home must meet certain criteria. The most important and common criteria are:
Most Likely Place for a tank to leak is at the oil filter around connections
- Interior tanks: 20 years and older will likely need to be replaced
- Exterior tanks: 15 yeas and older will likely need to be replaced
- Buried Oil Tanks: I doubt they would be insured (my strongest suggestion and a discussion for another day) SELLER to remove the oil tank and provide an engineering report.
- All Oil Tanks must be approved by ULC or UW
- Many insurance companies want a inspection report on the oil tank. (Most oil providers require inspection of the tanks before suppling oil to a new customer (even if they are currently supplying the home)
- All Oil Tanks must be at least 10 Feet away from the source of combustion (this can be reduced if a suitable barrier is erected)
A few more tips on oil tanks:
- If the tank does not have a Data-Plate with a date on it… it is too old. All legal tanks after 1980 have data-plates on them with the date of manufacture stamped on them.
- The cost to remove a empty oil tank can be 10 times cheaper than removing a tank with oil in it SO burn off the oil before having it removed (disposal of oil in existing tanks is expensive)
- Never Paint over the Data-Plate or you may be required to change it even though it might be alright
- If you are considering changing to gas, most gas companies will bring the gas line into your home for free as long as you install a gas appliance right away so rent a gas water tank first then switch heating systems when it is cheaper (like the fall or spring when AC and Heating demands are lowest and the best deals can be had)
This tank is likely too old even though it has been inspected (no date)
EXCELENTE TRABALHO !!!
GREAT JOB !!!
Let me know if you ever need more pics of oil tanks.
Thanks for the comment. I love pictures. If you see something that you thing is interesting please email me the photo.
Just one more note for people buying a home with an Oil Tank in Toronto. As a home inspector I can say Oil Tanks are fine but as a Realtor I can tell you that you should convert to gas when convenient. Outside the city is a different story but in Toronto there is no need to oil tanks. Even if the oil system is fine, most buyers will factor in the cost of conversion. The are easier and inexpensive ways to convert and complicated and expensive way to convert. Unfortunately people without experience with oil (most people in Toronto) will factor in the more costly approach. If you have a oil tank are considering selling within the next year, there are things you can do that will help prepare you home for sale. If you are buying a home that has an oil tank, the are processes that you can ask the seller (at not cost) to start which will greatly assist you in your purchase.
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