Some have claimed that the next challenge for homeowners who suffer from the Gulf Oil Spill in Florida may be a fight over whether the large insurance corporations will pay claims based on oil spill damage. Oddly, this may come down to whether crude oil damage is a product even covered under policies. Crude oil may not be a "pollutant" under coverage definitions. The distinction between refined petroleum products and crude oil blasting from a well may be the next dispute.
Is the Deepwater Horizon disaster an "explosion" as defined in policies? Yet another trap for beleaguered victims of the Florida Oil Spill. If the only damage is to the land or beach, some argue that the land or beach is not "property" covered under policies. Expect a tough fight from all corporate entities involved.
Source: http://www.insurancerate.com/will-home-insurance-absorb-costs-of-oil-spill-damage.php