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If a windstorm, fire, or other catastrophe ravages your building, property insurance will pay for repair and rebuilding, up to the amount of coverage. But what about the cost of clearing and disposing of debris before reconstruction begins?
Your property policy provides a percentage of total coverage, often 25% of the direct loss plus 25% of the deductible,– for removing debris after a covered loss. For example, with a loss of $100,000 and a $2,000 deductible, the removal payment would come to $25,500: 25% of $51,000. If this doesn't cover the cost, or the amount of the loss plus debris removal is higher than your coverage, the policy will pay another $10,000 per occurrence to dispose of debris. If you need additional coverage, some insurance companies will provide it through a policy endorsement, free, or for a nominal premium surcharge.Depending on the cause of loss and the degree of damage, these costs can be significant. For example, a fire might consume much of the debris, making removal largely a clean-up expense. On the other hand, if a hurricane or tornado caused the same amount of damage, clean-up might mean locating and cleaning up debris that the storm carried away from the site as well as clearing rubble from the location itself. What’s more, disposal of hazardous materials (such as asbestos tiles and chemicals) will be far more complex,– and costly,– than simply using a backhoe and dump trucks to haul the stuff off to the nearest landfill.
To learn more about this valuable coverage, just contact our agency. As always, we’re here to help you protect your business.