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S 813

Relates to maternal health care and birthing best practices; repealer

2025 Regular Session Introduced by Lea Webb

Requires homeowners policies to cover remediation costs for above-ground heating oil releases on residential property and third-party liability for related impacts.

SUBSTITUTED BY A914
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Bill Summary · S 813

Summary — S.813 (2025): An Act relative to the remediation of home heating oil releases

Short title: Supporting all Healthy Options when Purchasing Produce Act of 2025 (SHOPP Act of 2025) — (note: the bill text that follows actually amends insurance law regarding home heating oil releases).

Main purpose

S.813 amends Massachusetts insurance law (Chapter 175, §4D) to require that homeowners’ insurance policies (and coverage provided by the state joint underwriting association) include defined first‑party and third‑party coverages for releases of heating oil from residential above‑ground and at‑grade liquid fuel tanks. The aim is to ensure insurance pays for assessment and remediation of heating oil releases and liability for third‑party impacts.

Key provisions

  • Replaces current Section 4D of Chapter 175 with a new, detailed section defining covered events and required coverages.
  • Definitions:
    • “Residential property” = 1‑ to 4‑unit dwellings.
    • “Liquid fuel tank” = heating oil tank located in or outside a structure at or above grade (explicitly excludes underground tanks).
    • “Environmental media” = soil, water (surface and groundwater), sediments, plant life, indoor air, sewer/septic/ tanks, and other environmental matrices.
  • Required coverages (for policies issued/renewed on or after July 1, 2025):
    • First‑party property coverage: response action costs to assess and remediate heating oil releases affecting buildings, soil, indoor air or other environmental media on the insured’s residential property, and reimbursement for associated personal property damage. Coverage must be at least $75,000 per occurrence.
    • Third‑party liability coverage: defense costs and response action costs to address conditions on/off the insured’s property when a heating oil release has impacted or threatens to impact groundwater or has migrated (or threatens to migrate) to a third party’s property. Coverage must be at least $250,000 per occurrence.
    • First‑ and third‑party coverages apply concurrently when both are implicated.
  • Cost / deductible:
    • Insurers and the joint underwriting association may include a reasonable premium charge for the coverage.
    • Reasonable deductible allowed, not to exceed $1,000 per claim.
  • Exclusions permitted:
    • Insurers may exclude coverage if the release “would not have occurred but for” the owner’s failure to comply with statutory or regulatory tank maintenance/registration requirements (Chapter 148, §38J(b) or (c) and related regulations).
    • To invoke such an exclusion, the insurer must provide an annual, separate written notice (approved by the Division of Insurance) explaining the requirements in at least 16‑point type.

Who is affected

  • Homeowners with 1–4 unit dwellings that store heating oil above ground or at grade (coverage does not address underground tanks).
  • Insurers writing homeowners’ coverage and the state joint underwriting association (per Chapter 175C).
  • Third parties whose properties or groundwater are impacted by heating oil releases.
  • Division of Insurance (responsible for form approval, oversight of required notices).

Implementation / procedural timeline

  • Applies to homeowners’ policies issued or renewed on or after July 1, 2025.
  • The bill as filed was substituted by A914 (status notes indicate substitution). Committee and calendar actions are recorded in the bill history.

Potential impacts

  • Provides direct insurance funding for onsite remediation and offsite impacts from heating oil releases, reducing out‑of‑pocket costs for homeowners and potentially lowering reliance on state cleanup funds.
  • May increase homeowners’ premiums modestly to reflect added coverage; allows insurers to set reasonable premium charges.
  • Encourages compliance with tank maintenance/registration rules by permitting exclusions where noncompliance caused a release, subject to notice requirements.

Compiled from official sources — confirm details with the bill’s official record.

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