A debris removal clause is a provision in a property insurance policy that provides for the removal of debris from the insured's property. However, the debris must be caused by a loss specifically covered by the policy. Often, these provisions only cover losses of 5 to 10 percent of the total value of the policy. Debris removal insurance is a section of a property insurance policy that reimburses cleaning costs associated with property damage.
Debris removal covers the cost of removing debris from covered property damaged by an insured risk. It simply said that the coverage was expanded to include the cost of removing the debris resulting from the loss of property. While policies often include debris removal as a standard provision, the policyholder can often purchase additional coverage. Under the New York Standard Fire Policy of 1943 and its predecessors, debris removal costs are not mentioned as covered or excluded.
Debris removal insurance coverage is generally offered as “additional coverage” and not as part of basic property coverage. Generally, policies that include a debris removal clause only cover those that result from an insured risk, such as charred wood or twisted metal caused by a building fire. To clarify coverages, a debris removal clause was added to the forms attached to the standard fire policy. When determining compliance with the policy's coinsurance clause, the costs of removing debris were not taken into account; however, if it was determined that a coinsurance penalty was applied that would reduce recovery from loss of property, the usual adjustment practice was to apply the same limit to the payment for the removal of debris.
Debris removal insurance policies usually have a limit on the amount of reimbursement the policyholder can receive for debris removal costs. When calculating the numerous costs involved in repairing and replacing property after destruction or damage, the costs of debris removal and cleaning add to the value of the damaged property, and are not part of it. A claim for debris removal is only payable if it is submitted to the insurer within 180 days of the date of the loss.
