After the Fire…

After a fire (or other insured damage to your building) there will be debris that needs to be removed from the scene. Insurance coverage is usually limited to 25 percent of the loss. The amounts paid for debris removal do not increase the total limit of coverage for the whole claim. It is, therefore, possible that you can run out of coverage.

To help, insurers provide an additional amount of coverage (usually $10,000) to pay for the cleanup. 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? Asbestos or other hazardous substances (found in older buildings) may point to the need for additional insurance.

Is this a topic your insurance agent has discussed with you? If not, what does that say about the rest of your insurance coverage? Is it time for a comprehensive review of your insurance?