Islanders worry about oil spill coverage after hearing of one family's massive cleanup bill

Islanders who heat their homes with oil are double checking their insurance policies after learning about the massive bill dealt to one family when their tank leaked. 

After 1,100 litres of oil spilled onto their property, the Waite family was hit with a $345,000 cleanup bill and a lien on their home. They assumed they had insurance coverage in the event of an oil spill, but were shocked to discover they didn't. 

Neevin Clow said the Waites' story left him worried about what kind of coverage he had. 

"I was concerned that all of a sudden we'd put so much money into a house, and it'd be gone," he said. 

Clow said he called his insurer, who told him "not to worry."

"They checked my policy and everything was fully covered." 

Clow isn't alone in his concern. One insurance broker said they've been overwhlemed with calls since CBC News told the Waite family's story last week. 

Even staff at P.E.I.'s Environment Department, which deals with the aftermath of oil spills, have been double checking "the nuances of their insurance policies if they heat with oil," a spokesperson said. 

Seeking clarification is the right move, since many insurers either don't provide coverage for oil spill cleanup or offer it as an add-on to standard policies, according to the Insurance Bureau of Canada. 

"That's a great reason to check for all of those 'what ifs' — what your coverage is within your policy, what would be the result of a loss happening, whether it's a fire, an oil spill, a hurricane," said Amanda Dean, the bureau's vice-president in the Atlantic region. 

"Home insurance is one of those things we all need to purchase, and asking a lot of questions of your insurance representative is a wonderful thing to do, especially upon renewal." 

Dean said her advice is to be "as active as you can possibly be" with your personal insurance policy, especially when it comes to your home. 

"You're paying good money for those possibilities and have every right to know what's included, and especially what's not included."  

While it's unclear why many insurers don't provide oil spill coverage, Dean suspects it might have to do with low demand.