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April 24, 2019 by Waterline Environmental

Are Oil Tank Removal Costs Covered By The Government or Insurance?

Residential underground oil tank after removal from ground

At Waterline Environmental, one of the most frequent questions we’re asked is: will my oil tank removal costs be covered?

In this article, we explore this question among others:

Will the Canadian Government pay for my oil tank removal?

Unfortunately, the Government of Canada DOES NOT cover oil tank removal costs.

If you have an underground oil tank on your property, your tank is exempt from Federal Regulations. However, if this tank releases harmful oil into its surrounding area, you are no longer exempt from Federal Regulations.

If it is discovered that oil has leaked from your tank, you will need to take immediate and reasonable measures to address the spill and report it. Failure to take action or to report the spill is against the law.

Small house in foreground, insurance agent and client signing papers in background

Will my insurance company cover the oil tank removal cost?

Most home insurance policies DO NOT cover the damage to your home resulting from oil spills. In some cases, liability coverage MAY cover some of the cost if oil spills onto the property of your neighbour.

Without insurance that includes specific mention of oil tank spills or leaks, you will likely be fully responsible for the clean-up process and the associated costs with doing so.

If I’ve found a residential oil tank on my property, what’s the first thing I must do?

If you have discovered a residential oil tank during your attempt to sell your home, it becomes your legal responsibility to remove the tank or to disclose the presence of the tank to prospective buyers.

If you are interested in buying a home where a residential oil tank is present, we suggest that you do not purchase the home until the tank is removed and the soil has been tested for contamination while still under the ownership of the sellers.

If the current owner of the property does not have any paperwork on the oil tank, this is a clear sign the tank has not been removed or tested, and this paperwork does not exist. While their tank may not yet be leaking, over time, this tank may begin to spill, making it your problem in the future.

In other words, if an oil tank is not in use, it should be removed so that it does not create an environmental hazard that becomes more costly over time.

How to Spot Oil Tanks

If my tank is leaking, what action must I take?

Call a TSSA registered fuel oil contractor like Waterline Environmental to help you find and stop the leak and clean up any leaked fuel oil with soil remediation. You are also required to call the Spills Action Centre of the Ministry of Environment at 1-800-268-6060. Your insurance company may also be able to assist you.

tank removal

How much does it cost to remove an oil tank from the basement in Canada?

Costs from removing residential oil tanks vary for a number of reasons. However, costs typically fall between $450.00 and $1,500 for removal.

How much does it cost to remove an oil tank from the ground in Canada?

Depending on the location of the tank, underground oil tank removal can cost $4,500 to $5,000 for a typical 500 gallon (2250 litre) steel tank.

What does the oil tank removal and clean up process include?

  1. Removal of the tank from your property
  2. Removing contaminated soil from the tank nest if needed
  3. Testing soil for contamination and providing a detailed report


How We Can Help

Waterline Environmental is pleased to serve a wide geographic area within Ontario including Toronto, Hamilton, Burlington, Oakville, Guelph, Cambridge, Kitchener, Mississauga, Brampton, Brantford, Barrie, and Collingwood.

Contact us today for all of your oil tank removal needs.

Email: waterline@idirect.com

Direct: 905-876-8298

Filed Under: Uncategorized

Contact Waterline Environmental


President: S.A. (Stu) Ferguson
Email: waterline@idirect.com
Direct: 905-876-8298
Office: 855-333-6604
Fax: 519-856-2149

Waterline Environmental Inc.
President: S.A. (Stu) Ferguson
Email: waterline@idirect.com
Direct: 905-876-8298       

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Waterline is Canadian owned and operated and believes in preserving the environment. We take great pride in the quality of workmanship and believe in a "hands-on" approach. Waterline is TSSA Licensed, PM2 and PM3 licensed (required by code), Environmentally insured and a member of the Ontario Petroleum Contractors' Association.

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