Home insurance on property with oil tank leak

[star59]

What is the name of your state? NJ

My house is under contract and I have an oil tank leakage issue, and it it now at the stage where the home insurance company is about to undertake an underground water testing(oil tank has been removed). Is it true that I cannot go into closing until the whole clean-up is completed, because the buyers will be unable to get homeowners insurance on the property with this pending oil leak?

Thanks.

 

[BelizeBreeze]

Yes. And, not only that, but you will also have to do a (superfund) toxic cleanup of the area if the leakage is deemed sufficient.

I just did such a cleanup on a property of less than 1/2 city block and it cost more than $400,000.

 

[star59]

Home insurance on property with oil tank leak: renting to buyer

What is the disadvantage of renting the house to the buyer while oil cleanup is undergoing? I could still continue the current home insurance while it is being rented by the prospective buyer?

 

[BelizeBreeze]

That's a question for your insurance carrier.

 

[HomeGuru]

So what did your insurance co. tell you?

 

[star59]

I changed my mind about renting the house to the prospective buyer. It's a bad idea, unless the house is brand new.

 

[HomeGuru]

I do not follow your pretzel logic.