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I am a potential first-time home buyer, so I don't have much experience with this either (other than when gas prices were high, everyone was concerned about the price of heating an oil home). That said, my broker just mentioned the other day that she is seeing it come up as a problem with homeowner's insurance if the tank is underground; she said prior to about 6 months ago, a home having oil heat with in-ground tank was never an insurance issue (maybe increased risk, but you didn't have a problem getting coverage). But now, she is seeing people have a real problem getting insurance if the tank is underground. Now, I'm a lawyer so I understand a bit about environmental liability if the tank leaks fuel into the ground; I'm not sure if there has been a significant change in NJ or Federal law lately to cause the issue she spoke of, or if insurance providers are just looking for reasons to turn people away. She did say that she had one buyer who insisted that the conversion to gas and the filling of the oil tank with sand occur prior to seller transferring title so that if any problems arose buyer wouldn't be liable. I think that's a very smart idea, and you may want to look into this more, speak with your broker to see if they have seen this happening, and maybe make it a negotiating point if you fall in love with a home with an underground oil tank.
We're looking at a few new homes & one we like has oil heat...
I'm not a big fan, but wondered what others had to say.
Has anyone ever done an oil to gas conversion?
If so, what did it cost & what was the effort?
Thanks...
Watch out with Oil Heat. You need to know where the storage tank is, and if it was ever underground, or still underground. If not buying a recent built home, even check if it was always gas. My insurance agent said some are not disclosing underground tanks, which can cost $200,000 plus to remediate. I know, I had that problem, was $235,000. In those days insurance covered it.
HATED oil heat.
I am glad to never again have a heating system that relies on some kind of delivery in order to work.
I can't tell you how many times we ran out of oil.
I have a underground oil tank it was easy and cheap to insure. I was thinking about changing to gas but was told if i attempted to remove the tank the insurance would be void. I like oil, the cost has been reasonable and it is less volatile than gas. I have never heard of a house exploding due to an oil leak.
I had an underground oil tank and had it filled. Now have a Roth tank in storage space in basement. It is a tank within a tank and looks like a restaurant refrigerator.
Never had a delivery problem nor ran out of oil. Oil company should have you on automatic.
House was built in 1960 and has cast iron elements on lower wall painted accordingly and framed in wood.
I personally would not switch to gas.
Watch out with Oil Heat. You need to know where the storage tank is, and if it was ever underground, or still underground. If not buying a recent built home, even check if it was always gas. My insurance agent said some are not disclosing underground tanks, which can cost $200,000 plus to remediate. I know, I had that problem, was $235,000. In those days insurance covered it.
Diane is right -- there have been several threads on here about underground oil tanks and the dangers they pose (especially financial dangers).
Underground oil tanks are NOT covered by homeowners insurance and can turn into an absolute nightmare. Do not purchase a home with an underground oil tank! There is absolutely no reason to do so in this market -- have the seller remove the tank BEFORE closing and make sure the ground is tested for contamination.
Wiley works in this area and can give you more info if you need it.
HATED oil heat.
I am glad to never again have a heating system that relies on some kind of delivery in order to work.
I can't tell you how many times we ran out of oil.
I lived in my house 13 years, and never ran out of oil, even when my underground tank as leaking. I had scheduled deliveries, and a service contract with Petro Oil.
I have Gas now, and the house was built in 2002, so 2 Zone heat, and AC
Diane G
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According to my broker
