Under the ISO form, the established limit for debris removal is 25 percent of the cost of repairing or replacing damaged property plus the deductible. You must use part of your Coverage A (housing) benefits to cover this expense, or there may be additional debris removal benefits in addition to your coverage A. Insurance companies recognize that removing debris can be a financial burden, not to mention the cost of repairing the property. However, when policy limits run out, especially after a major loss, there may be no additional debris removal coverage left or very limited.
After a policyholder suffers a covered loss, you might be surprised to learn that your insurance policy doesn't set sufficient limits for debris removal. When calculating the costs related to repairing and replacing property after destruction or damage, the costs of removing debris and cleaning are additional and not a part of the value of the damaged property. You can also report your intention to remove the debris so that you will not be accused later of ruining the evidence. Debris removal insurance coverage is usually additional coverage included in many property insurance policies and covers the costs of cleaning, transporting, removing, or removing debris from covered goods damaged or destroyed by a covered hazard.
Take pictures of all recognizable items in the rubble before they are taken away, particularly items that your insurer removes to clean or recover. In general, most policies can include coverage for the removal of debris up to the limits of the applicable covered property policy. You have to use part of your building's coverage or there may be additional benefits for debris removal in addition to your building boundaries. Although there is no reference point that can be used to estimate the cost of removing debris before the loss, one suggestion is to request a cost estimate from a local demolition or debris removal contractor on the assumption of a total loss.
While most policies may include an additional five percent limit if the loss exceeds the policy limits, the insured should periodically review the policy limits or consult with their agent to increase the limits when necessary, including purchasing higher amounts for debris removal.
