Debris removal insurance…
After a fire or other insured event causes damage to your building, there likely will be debris that needs to be removed. Most property insurance policies limit coverage to twenty-five percent of the loss. ($100,000 fire means you get $25,000 of insurance to pay to haul away the debris.) That sounds like a lot until you look at the cost of disposal. To help, insurers provide an additional amount of coverage (usually $10,000) to pay for the cleanup in addition to the percentage. Some insurance companies increase the additional amount to $25,000 or $50,000.
Consider your buildings. Will special disposal of rubble and debris increase the cost of reconstruction? What is your limit of debris removal insurance? Asbestos or other hazardous substances (found in older buildings) may point to the need for additional insurance.
Question for your agent: How is coverage provided for debris removal in our insurance?
