Home Insurance Articles
What A Debris Removal Clause Means For Your Premiums And How It Works After An Accident
2010-05-08
Purchasing a home will probably be the largest investment you make in your life. Many people invest their life savings in the place that houses and shelters them and their families for many years. Imagine the costs you will have to absorb if your home was damaged or destroyed and you lost everything that you own. Not many people have this much money at their disposal. This is the purpose of home insurance coverage.
Home insurance policies come with a variety of coverage. They range from the most basic policy, covering only specifically named perils, which include things such as fire, theft, windstorm and hail, water damage, riot, or impact by aircraft or land vehicle. You can purchase a broad policy that will cover the building and expensive items for all risks and smaller, less expensive personal property for named perils, or you can buy a more comprehensive policy that covers both the dwelling and contents for all risks, minus specific listed exclusions.
Additional coverage can also be added, which are completely optional. You can choose to cover your home for earthquake damage if you reside in an area that is affected by earthquakes, or you can add sewer back-up coverage. Usually, a home insurance policy will only cover direct damage. This means that if a driver loses control and smashes into the home, it will be repaired. Sometimes, events occur that cause indirect damage to the home. For example, if there has been a tornado and the tree in your backyard falls onto your house, causing damage to the dwelling and your personal property. As well, rain comes into the opening that was made by the tree. Now, not only do you have damage to your home, you have a tree that needs to be removed. Most policies have what is called a debris removal clause built in to their coverage. This coverage is designed to reimburse the policy owner for the costs incurred from having to have the tree removed. Normally, this coverage is set at a certain percentage of the policy's face value; usually 5 to 10%. Without this coverage, the home owner will have to dish out hundreds and maybe thousands of dollars to remove the tree and branches, depending on the size and location of the tree.
It is important that you always review the coverage, limitations, and exclusions when you are purchasing home insurance coverage. Your insurance agent should be able to explain the definitions and answer all of your questions regarding your home insurance policy. Ensure that the policy includes a debris removal clause to protect you from any additional out of pocket expenses.