August 2007

Cleaning Up the Mess

Many businesses are aware of the cost associated with repairing or rebuilding their property if damaged by a covered loss. What many commercial property policyholders may not realize is the extent of the costs of cleaning up the damaged property.

While the property policy may be clear on how it will pay to repair or replace the damaged property (actual cash value, replacement cost, etc.), a valuable coverage that may not be as clear is the cost to remove debris. Consider what types of materials were used in the construction of your building. Do you know how much it would cost to hire someone to remove the damaged materials from your premises after a loss? How much of the expense to remove the debris would be covered under your property insurance?

Depending on the extent of damage, the cost to remove debris may be considerable. Further, such costs may be unavoidable if you wish to rebuild. Consult your property policy for information on how your current policy addresses this valuable coverage. Additional coverage may be available by endorsement. Call us if you would like more information.