Business insurance quotes

Debris Removal Insurance

Imagine if your property has been severely damaged due to a fire or a violent storm with high winds. You will typically find that your home insurance policy will pay for the reconstruction of the building, or indeed the replacement of your property. However, prior to any rebuilding starting you will have to clean up the mess. If your home has been damaged in a fire then the remains of the building must be disposed of prior to any work beginning. You will generally find that the vast majority of home insurance policies have something known as "Debris Removal".

It wasn't that long ago that this was simply a case of loading up a dump truck to haul the rubble to a landfill. However, environmental laws have drastically changed the way in which we dispose of the things. There are various factors that need to be considered first such as your tile insulation or floor coverings may have been made of asbestos, there may have been chemicals stored in the building, and certain manufacturing materials are prone to change from the heat of a fire which may turn them into hazardous waste.

Debris removal insurance is generally seen as an additional form of coverage. Your insurance company will pay the expenses to remove debris that is the result of a covered loss. You will typically find that the most common type of property insurance policy will provide coverage for debris removal that is equal to 25% of the total amount paid, plus the amount of your deductible. Therefore, if the paid loss is $100,000, and your deductible is $1000, the debris removal expenses that will be paid for is 25% of $101,000 or $25,250.

Should you find that this amount is insufficient to cover the overall costs of debris removal, most insurance companies will offer up to an additional $10,000 per occurrence. This is usually available to cover the cost of debris removal in the "limits of insurance" section of your insurance policy. You do also have the ability to purchase an additional amount of insurance specifically for debris removal expenses. This is normally done when you are negotiating your insurance policy, although I would hazard a guess it is not something that most people think about.

When purchasing an insurance policy you should also consider any laws that may impact on the rebuilding of a structure. There are various municipalities which have zoning ordinances that will not allow for the reconstruction of buildings which are considered to have “nonconforming usage”. If this is the case, you will also have to look into the demolition of the undamaged sections of the building. This may additionally mean that the building needs to be constructed in a completely different location, which can lead to even higher costs.

One important factor of debris removal insurance is that in order to claim, it must form part of a claim for damage or destruction to an insured property. Therefore, imagine if you have high winds one night and a tree in your garden is knocked down. The tree, however, comes nowhere near your home and simply falls in the garden. Unfortunately, debris removal insurance will not provide coverage for the removal of this tree, as it has caused no damage to your “insured” property. The exact same can be said if a tree from your next door neighbour's garden falls into your garden and damages the fence. Unless your home insurance policy specifically covers damage to fences, you will find that the removal of the tree and will not be covered by debris removal insurance.

The basics of debris removal insurance will include that the property that has been damaged or destroyed must be an insured property. The insured property must be damaged or destroyed by a cause of loss that is covered within your insurance policy. You must actually incur expenses in order to remove the debris. One thing that debris removal insurance is not particularly intended for is to be used as back-door pollution coverage. This will typically mean that there will be no coverage of the costs involved in removing pollutants from either land or water. This will also include no coverage whatsoever for the replacement or restoration of polluted land or water. In addition to this, the vast majority of debris removal expenses will only be covered if the incident is reported to your insurance company within 180 days after the date of loss.

It must be said that debris removal insurance is hardly ever considered for homeowners, although it is an extremely important form of coverage for a commercial property. There are numerous factors that can affect the day-to-day running of a business, and no business owner wishes to delay the rebuilding of their structure due to having insufficient debris removal insurance.

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