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Underground Storage Tanks
There are over a half-million underground storage tanks in the United States containing petroleum or other substances that are subject to federal regulation. This is in addition to the countless underground and above-ground tanks storing heating oil or other substances that are not subject to federal oversight. These tanks have been the focus of major federal and state environmental legislation over the last three decades. Among other things, this legislation has given rise to financial responsibility requirements that continue to drive the market for insurance for certain classes of tanks.
The patchwork of federal and state legislation aimed at regulating storage tanks, and what happens in the event of a release, is far too broad a topic to address in a single article. Rather than attempting to discuss each of the relevant issues, this article will provide a brief overview of the federal regulatory system and how this system affects the insurance market. This article also explores some of the issues that often arise in the context of insurance coverage for underground storage tank releases, both for dedicated tank policies and under homeowners insurance.
Regulatory Overview
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