A property with an underground oil tanks can be one of the most expensive problems for a new buyer. Complete decommissioning and soil sampling can cost $100,000. Homeowners need to remove their oil tanks before they decide to sell. Keeping the buried tank private will help them avoid potential issues, such as a lack of liability coverage.
Potential Leaks
Old underground oil tanks can leak or break, contaminating soil around the tank. It can cost new homeowners a lot of money to address. It can also affect mortgage companies as many are wary about financing homes with buried oil tanks, especially if they must be certified as abandoned. Even if your underground oil tank doesn’t appear to leak, you must remove it because polluted soil can still damage the surrounding area. It can include structures built on the property like sheds, decking or even a driveway.
Above ground storage tanks are extremely simple to check for leakage compared to underground storage tanks. A leak or potential leak point is simple to find with routine inspections, maintenance, and proper use. These are a significant turnoff for potential purchasers if you ever plan to sell your house. It would help if you trusted only some people to handle an oil storage tank; only an aboveground tank removal Putnam County specialist or a certified demolition contractor can safely manage and remove your tank.
Environmental Hazards
Before municipalities provided natural gas lines, many homes stored heating oil in buried tanks. Even when homeowners switch to natural gas, those tanks can remain underground, a hidden environmental hazard that could cause a leak. Leaking oil tanks can contaminate the soil around the home, exposing homeowners to expensive remediation costs. Plus, most homeowner insurance plans don’t cover the cost of cleanup, putting homeowners on the hook for a potential liability.
Underground oil tanks are also unsightly and can be an eyesore on your property. That can detract from your house’s curb appeal and limit the number of potential buyers. Many builders prefer homes with old tanks, which may lengthen the sale process. Removing an underground tank before you move in is important to ensure your new house is safe and environmentally sound.
Health Issues
If you have an underground oil tank, even if it’s not being used, you should consider purchasing specialized insurance coverage. This type of coverage is called oil remediation, and it can cover the cost of cleanup if there is a leak from the tank or it causes soil contamination. Generally, fuel oil tanks are made of steel, which rusts easily. This corrosion leads to water vapor and creates sludge accumulating on the tank’s bottom. This sludge can be dangerous because it contains waste oil, rust particles, minerals and water. This sludge poses a health risk and needs to be removed safely during oil tank removal.
Damage to Property
Besides being an environmental hazard, a buried oil tank can cause structural damage. It may range from small issues like cracking drywall or windows to major problems such as a collapsed structure and extensive soil contamination. As a result, new homeowners are often wary of buying homes with underground tanks. Before purchasing the property, they will seek proof that the tank has been properly decommissioned and capped. It can be costly for the sellers.
In addition, some mortgage and home insurance companies will not approve a person buying a house with an uncapped or leaking underground oil tank. For this reason, it is best to remove an oil tank before putting your home on the market.
Devaluation
A buried oil tank is one of the biggest devaluing factors for a property. Potential home buyers will be scared off if they discover a tank on the property. It will limit the pool of prospective buyers to a smaller group, and it can take time to sell your property. The removal cost will increase if a new structure is built on top of your tank, and the design limits access to the area. Also, if the tank was not decommissioned correctly and there is evidence of a leak, this may lead to future problems that will be costly. A reputable company will decommission your tank properly and provide you with a notarized letter of abandonment for the property. It will help you avoid a devaluation of your property. Read more interesting articles on Ebeak
