Quick Answer
Insurance coverage for underground propane tanks typically includes physical damage to the tank, damage to surrounding property, and liability for accidents involving propane leaks or fires. Many insurance policies also include coverage for excavation costs in the event of a tank rupture. Policy limits and deductibles vary depending on location and provider.
Understanding Coverage Requirements
When insuring underground propane tanks, it’s essential to understand the specific coverage requirements for your area. Propane tank insurance policies usually require a site inspection to assess the risk and determine the premium. For example, if your tank is installed in a seismic zone, you may need to pay a higher premium due to the increased risk of tank damage.
Policy Riders and Add-ons
In addition to standard coverage, you may want to consider policy riders or add-ons to protect against specialized risks. For instance, a “digging coverage” rider can help cover the cost of excavating and repairing a tank in the event of a rupture. Some policies may also offer a “leak detection” add-on, which provides an annual inspection and testing of the tank’s leak detection system.
Choosing the Right Insurer
When selecting an insurer for your underground propane tank, look for companies that specialize in energy infrastructure insurance. These companies typically have experience with propane tank risks and can offer more comprehensive coverage options. Be sure to review policy limits, deductibles, and exclusions carefully to ensure you’re adequately protected. It’s also a good idea to consult with a licensed insurance professional to determine the best coverage for your specific situation.
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