With the credit crunch tightening purse strings, the cost of oil peaking earlier this year at $145 a barrel, and prices at the pump escalating to record levels, more people are deciding to make biodiesel from cooking oil as a way of cutting their expenses. However, without the right home insurance cover in place this could be a costly mistake.
The dangers of producing biodiesel at home are very real - and this was exemplified when a man in Northamptonshire was injured during biodiesel production. He used an electric drill to mix the oil with ethanol and caustic soda when a spark ignited the flames and caused an explosion. The man was left with 20 per cent burns and his garage suffered significant damage.
The UK Government does allow biodiesel to be produced at home - you can create 2,500 litres of biodiesel a year tax-free. However, the savings can be quickly wiped out if you don't have suitable home insurance in place.
Before beginning biodiesel production you should be very careful to ensure your home insurance policy will cover any damage should an explosion occur. Pay particularly close attention to the policy wording - many state that policyholders should ensure that "reasonable precautions" are adhered to and that they are required to "keep any property insured in a good state of repair and take all reasonable steps to prevent accidents, injury, loss and damage."
If you do not take "reasonable steps" to avoid damage, chances are your claim will be made void - which could leave you in a disastrous financial position, especially if your home was destroyed.
Check your home insurance policy for accidental damage and personal injury cover - if your existing cover isn't adequate compare home insurance online for a better deal - or make biodiesel away from the property to avoid disaster.