Insurance on Property - 1.1

In addition to damage or destruction by an insured peril of property insured under a Basic Fire Policy, the insured may incur expenses for the removal of debris left by the loss.

Describe the coverage provided by the Basic Fire Policy for such expense.

Answer:

The Basic Fire Policy indemnifies the insured for the value of insured property damaged or destroyed. But the loss many also leave behind debris that must be removed, especially if the property is to be rebuilt or repaired. Without special provision in the policy, the expense would not be covered by the policy.

This expense is considered to be covered by the policy if it is included in the amount of insurance chosen by the insured. In this case, the total amount of insurance is the total of both loss of or damage to the insured's property and the expense to remove any debris left by the loss. However, if the policy contains a coinsurance clause, this expense will not be included.