Debris Removal Insurance Coverage: What Is It?
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Debris removal insurance is a common extension included in many property policies which provides coverage for the expenses to remove debris of covered property damaged or destroyed by covered loss from insured premises.
The amount of coverage automatically included varies among insurers. Some policies include debris removal within the limit for building/contents, while others set a specific limit or percentage of the building/contents limits. The key is, regardless of the limit provided by the automatic extension/addition, that amount is typically included in the building/contents limit and does not typically increase the limit in place for the building/contents.
A catastrophic loss may use a significant portion or the entire direct damage limit, leaving an insufficient amount for debris removal expense. It is important to consider the cost of debris removal when establishing a direct damage limit at any one location.
What To Consider When Determining How Much Coverage Is Needed
- Age of the building
- Proximity to other buildings (i.e., maneuverability of equipment)
- Type of structure (wood frame or steel frame; steel will be more expensive to cut, clear, and remove)
- Existence and type of hazardous materials
While there is no benchmark that can be used to estimate the pre-loss cost of debris removal, one suggestion is to request a cost estimate from a local demolition/debris removal contractor based on an assumption of a total loss. An increase in coverage sub-limit and overall location limit can be requested as deemed appropriate based on this estimate.
We offer all of the following related products:
Property Insurance- Including Business Interruption & Extra Expense
Machinery Breakdown/Boiler & Machinery Insurance
Course of Construction(COC)
Wrap-up Liability Insurance
Commercial General Liability / CGL Insurance
Pollution Liability Insurance
To Learn More About Debris Removal Insurance Speak To An ALIGNED Insurance Advocate Or Connect With Us Today At www.alignedinsuranceinc.com
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