Debris Removal Clause
The debris removal clause covers, in addition to the underlying property damage, the cost of clearing debris and wreckage produced by an insured event, usually subject to its own percentage limit or separate sub-limit above the sum insured.
- Clause type
- Extension
- Origin/Market
- International programme
- Favours
- Insured
- Negotiability
- Market standard
Purpose
Following a major property loss – for example fire, explosion or windstorm – substantial costs are regularly incurred in clearing debris, wreckage and destroyed material before reconstruction can begin. These clean-up costs are distinct from the underlying physical damage and, without a specific provision, would erode the sum insured otherwise available for reinstatement.
Effect and limits
The clause indemnifies the policyholder for costs necessarily incurred in removing debris caused by an insured loss. It is common to cap this at a percentage of the sum insured or of the loss amount (frequently 10 to 25%), plus a fixed additional amount, with total indemnity usually subject to an overall limit. Many wordings require debris removal expenses to be reported to the insurer within a set period after the loss; whether the costs must already have been incurred by then, or a contractor’s estimate suffices, depends on the specific wording. Costs of removing environmental pollution are typically not covered under the debris removal clause but under a separate pollutant clean-up extension.
Negotiation and practice
For properties with high reinstatement values or complex construction (for example reinforced concrete or industrial plant), the percentage cap deserves careful scrutiny, since demolition and disposal costs can be substantial, particularly where contamination is suspected. The reporting deadlines for debris removal expenses should be checked against the realistic timeline for handling a major loss.