Term of the Week: Debris Removal Coverage
What It Is
Debris removal coverage pays for the reasonable cost to remove the debris of covered property following a covered loss. In a standard homeowners policy (ISO HO-3 form), it is typically included as an additional coverage — meaning it does not reduce the Coverage A limit — up to a specified sublimit, often 5% of the Coverage A amount plus the loss payment.
Why It Gets Complicated
The sublimit is the first trap. In a total-loss scenario — especially after a tornado or CAT wind event — debris removal can easily exceed 5% of Coverage A when you account for full lot clearing, elevated CAT-zone tipping fees, haul distance, and right-of-way material. When the sublimit is exhausted, additional coverage may be available only if the insured requests it specifically and the policy allows for it.
The second trap is scope. Policies typically cover debris of covered property. That means:
- Debris from the insured's structure: covered.
- Debris from a neighbor's tree that fell on the insured's property: generally covered for the removal cost if the tree damaged a covered structure.
- A neighbor's structural debris deposited on the insured's lot by wind: coverage question — often argued as not the insured's property, requiring third-party coordination.
The Adjuster's Checklist
- Confirm the sublimit and whether it is in addition to or part of Coverage A.
- Scope the full debris field — not just the building footprint — before writing the line item.
- Document boundary crossings and right-of-way material separately: authorization and cost-allocation differ.
- In CAT zones, get local tipping fee and haul-distance data before applying default Xactimate pricing.
The Bottom Line
Debris removal is not a rounding error. In a major CAT total loss, it can be a five-figure exposure. Scope it like one.