Home Insurance w/Oil well

[gamehunter]

What is the name of your state?Michigan
We have our house on 70 acres that has an oil well on it. As I bought the land I did not relize that it could affect whether I could get home owners insurance or not. The oil company carries their own libility insurance on the wells, but it seem s that I can not quote out the policy for competitive rates. I am wondering why insurance companys can decline insurance for land with oil wells when the landowner has no rights as to if they put a well on the property to begin with unless they hold the minerial rights. Does any one have any advice as to whether they can denie insurance for this property?

 

[seniorjudge]

Q: Does any one have any advice as to whether they can denie insurance for this property?

A: Yes, insurance carriers can deny insurance to applicants.

 

[gamehunter]

It is to my understanding that as long as you do not hold the mineral rights to your property then who ever does can do what they need to to access their minerals. Why can they do this if they can cause econic hardship for the surface land owner. It just does not make sense that the laws are written this way, when ones actions can cause this hardship and not be responsible for it.

 

[seniorjudge]

Q: It is to my understanding that as long as you do not hold the mineral rights to your property then who ever does can do what they need to to access their minerals.

A: Generally, that is correct (but usually the mineral owner must support the surface.)


Q: Why can they do this if they can cause econic hardship for the surface land owner.

A: That's the law.


Q: It just does not make sense that the laws are written this way, when ones actions can cause this hardship and not be responsible for it.

A: Run for the legislature and get the law changed.

 

[mlk1978]

This one is a tough call. As an insurance agent I have seen quite a few situations where you would think a home would be uninsurable. There have been circumstances (very rare) when you can speak with your agent and/or company and write up certain exclusions. If the people that own the oil rig have their own insurance, you can try to negotiate a deal with that company to exclude ALL losses that can come with that exposure and again with the insurance carrier. Before you try that route, make sure that those people have not only general liability, see if they can possibly get premises liability (may already be included in their GL) and workers compensation. See if you can have them write up a legal contract stating that you will not be held harmless (Hold Harmless Agreement) if there were ANY type of injury including but not limited to personal, injury, property. I cant guarantee that it will work but it is worth a shot, I have seen it happen before, just not with an oil well. Other than that, there are companies that will insure your home given your situation. However, most of those companies will be "foreign or alien" meaning out of the country and non-michigan based companies. There are thousands of insurance agencies in michigan who work with broker companies (these companies deal with alien and foreign co). Have you called any other agencies to see what you can find? Chances are it will be pretty expensive. Good luck!