Nationwide Insurance, of Ohio, states it will not cover damage related to fracking.
Interesting. That's a good way for them to avoid the business of thousands of Ohio landowners. Good strategy on their part. Nationwide is on your side...unless your land contributes to American energy, in which case call Allstate.
Just because they are based in Ohio, doesn't mean that's just for Ohio. It's for wherever they sell insurance.
It sounds to me like nationwide is setting itself up to deny legitimate claims just because drilling is taking place nearby. Either that or it is a ploy to scare homeowners into opposing drilling. Want to bet it comes from a city office that's heated by nat gas or propane? Either way the article proves that people believe the hype and not the facts, even supposedly educated corporate leaders.
If you do rely on the 5 million insurance policy that the driller owns and they agree to indemnify you, that still doesn't entirely solve it. You are still the third party and the insurance company will fight with all they have not to pay it. You want to have the driller actually name you on that policy as an additional insured. Then they will protect you, too. If you simply get them to indemnify you, you will have to sue the insurance company to pay a claim. As an additional insured, they will protect you. Then you need to negotiate the terms of the policy for how long you must remain on that policy. What if a well leaks later on after they have left? You still want insured don't you? At least that's what my insurance guru told me.
Maybe we will see something like the mine subsidence riders in the future. I spent a few years managing storm repair damage jobs. Of all the insurance companies I dealt with, I have to say at that time Nationwide was the most favorable to their insured.
Here's another article I found.
Willis said policies for blowouts - called Operator's Extra Expense - exclude pollution from an underground blowout, which it saw as unlikely to change given the risks tied to fracking.
I think we had better be more careful as time goes on to get some of this covered by the driller.
Who would be liable the people with the pad on there property or everyone in the unit ?
Yes. He said to make sure the additional insured coverage is primary to my homeowners. An indemnity clause still makes you the odd man out and the insurance company will fight so they don't have to pay the claim. Remember, they are not looking after you. They will look after indemnifying the driller so they don't have to pay the claim. He also said that everyone in the unit should get it that way and not just the person who hosts the actual drill because pollution can occur in such a wide area. I didn't believe him until I saw the news on the methane migration in LeRoy last month and then it made sense. I wouldn't want to be that small parcel in a unit that is not on the driller's policy as an additional insured when all the other landowners have the insurance company to protect them and I have to fend for myself.
He also said to make sure I am insured for the life of the well until closing it.