Does insurance cover an oil spill?

BP Gulf oil spill and insurance

BP and the Gulf Oil spill are going to affect my property. My immediate environment is ruined. Is my house insurance going to pay to clean my beach? Is BP going to pay? What about Enbridge and possible claims in Michigan?

If you live on a houseboat and the oil created noxious fumes then yes, you would start an insurance claim. If it is just the beach property then no, the government and volunteer agencies will to have to step up on this one. BP and Enbridge will probably get a big bill from Uncle Sam.

For an oil spill claim there has to be damage to the home or property itself. The beach is usually not owned by you. The good news is that comprehensive house policies do not exclude oil spills. If you do have property damaged then you could be okay. If you bought a lesser form such as broad or named perils then oil spills are not "named" and so will not be covered.

If the Deepwater Horizon disaster has affected boats or other property that you own then yes, you should start a claim. You may find that clean-up is cheaper then the deductible. Perhaps BP will refund the deductibles? This is assuming that the oil can be cleaned off - just like the little ducks we see on TV. For the home with the noxious fumes there is an oxidization process that removes bad smells. Keep your receipts.

The businessman who has lost his source of income needs to check out the BP Gulf of Mexico oil spill website as loss of income and business interruption claims are being paid.

The BP Gulf of Mexico oil spill and cleanup of the Deepwater Horizon disaster will cost about $84 million for loss of income and net profit for individuals and business that have been affected by this incident.

Public opinion is that there should be full compensation from BP and Enbridge for any and all losses. The limit of liability that BP has for their own insurance should not affect payment to be given back to the people that have suffered as a result of this oil spill. BP has huge financial resources, they should have to dig deep into their pockets to make things right. If subcontractors are found to be liable then their insurance policies will come into play. If that is still not enough then where does the buck stop?