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Who pays for Debris Removal after a storm?

By
Services for Real Estate Pros with The Murray Group Insurance Services Inc

 As I stare out my window and watch seven to twelve inches of white cover the greater Capital Region (Albany, NY), I begin to think about Debris Removal.  After the 75 mph gusts we had yesterday there will be a significant number of trees, branches, bushes, and shrubs scattered, fallen and broken all over local property owners buildings and lawns.  When the snow melts home and income property owners are going to want the "debris" littered across their property removed.  So the question bears being asked, who pays for the Debris Removal after a storm?

The first call most people make is their town or city office.  The town or city you live in is only going to pick up the bill if the debris has fallen on a power line or is in a public place.

The second (and in some cases the first) call home and income property owners make is to their insurance agent.  So take yesterday for instance, after the 75 mph winds blew through the Capital Region I received two phone calls which both started the same way; "I have a tree fallen on my property.  Does insurance cover the removal and for how much?"

In the first case the tree had fallen on the edge of the guy's house causing damage to the roof.  In this case the answer is Yes the removal is covered.  Any debris caused by a COVERED PERIL (very important, I will expand on this in my next blog) that causes damage to a covered structure has debris removal coverage.  All Homeowners and Dwelling policies will have a sub-limit for debris removal ranging from $250 to $1,000 and will usually have a per tree, shrub, bush limit as well.  So in the case the Homeowner had $500 per tree up to a total of $1,000 for all removal minus the deductible.

In the second case the tree had fallen and completely missed the house and landed right in the middle of the homeowners front lawn.  It was not blocking his driveway but was a terrible eye-sore and inconvenience.  In this case I had to tell the Homeowner that he had no coverage for the debris removal.  The debris removal was not covered because there was NO damage to a covered structure and was NOT blocking a driveway and ramp.  If there is no damage there is no coverage for debris removal.  As with most homeowner policies this guy did have $250 to replace the tree once it was removed.

People say to me, "$500 is not alot of money for the removal of a tree."  That is true, but its important for property owners to understand that their insurance policy is not designed for maintenance activities (The idea of "maintenance claims" will be expanded upon in a future blog as well).  The reason that Debris Removal is covered on a homeowners policy is so the tree that damaged the roof of your house can be moved so the roof can be fixed.  If you have many trees near your home or income property it may be worth your time to discuss endorsing your insurance policy with an increased Debris Removal limit.  Real Estate professionals this is also another small bit of knowledge that may lend piece of mind to the new property owner and credibility to you, during the purchase.

Happy New Year.

 

Comments (2)

Michael A. Caruso
Surterre Properties - Laguna Niguel, CA

doesn't sound like a happy new year out there...

i think the city takes care of debris remaining as a result of wind here on the west coast...are insurance rules different in each state? 

Dec 31, 2008 03:23 AM
Lane Bailey
Century 21 Results Realty - Suwanee, GA
Realtor & Car Guy

I guess there is one silver lining for the people living in subdivisions where they scrape all of the old tress and leave little saplings...

Dec 31, 2008 03:50 AM