6 ADJUSTINGTODAY. COM A D J U S T I N G T O D A Y Some Special Debris Removal Problems The debris removal provision of most property forms is restricted to the cost of removal of “debris of covered property.” So the cost of removing debris deposited on the premises, as by a windstorm or explosion, without damage to insured property is not covered. But when such debris causes damage to covered property, common adjustment practice will pay for its removal along with any debris of covered property. An exception to this language limiting coverage to “debris of covered property” appears in dwelling flood policies, which cover removal of debris “of, on, or from the insured property.” Other special debris removal problems that may require attention: (1) Molten material—the escape of molten material (metal, glass, plastic, etc.) from a vessel or container or its solidification within a container from the loss of heat or power can produce a sizable loss. If the cause is an insured peril, there is debris removal coverage, but the cost may well exceed the debris removal limit unless the exposure has been recognized and additional debris removal coverage purchased. (2) Toxic or radioactive contamination—can involve severe and expensive debris cleanup and disposal problems. Toxic materials can be found in common use in many situations— on supermarket shelves, stored in warehouses, in many industrial applications, to suggest only a few—and when involved in a fire, explosion or other loss resulting in their spillage or dispersion—as in the smoke from a fire or in the water used to extinguish it—the cleanup cost can be astonishingly high and the time delay in making the premises habitable again can be prolonged. Older electric transformers may contain polychlorinated biphenyl (PCBs), and a small electrical fire involving PCBs can contaminate an entire building. (3) Effect on business income or extra expense recovery—business income and extra expense forms make no direct mention of debris removal nor do they impose any stated limitation. But failure to purchase a high enough insurance limit for either of these coverages—taking into account possible delays in restoring operations because of prolonged decontamination or debris removal—can result in exhaustion of the insurance limit and a partially uninsured loss, before normal operations can be resumed. When any such exposures are found to exist, the need for increased business income or extra expense coverage along with additional debris removal coverage should be considered. Also, the possibility of contamination of land or water by any of these materials must be considered, per the following discussion. Pollution Coverage The debris removal coverage of the commercial building and personal property form includes the extra cost of cleanup and disposal of hazardous materials following an insured loss (within the limits of coverage outlined above) but, as noted earlier in this article, the coverage does not apply to the cost to extract “pollutants” from land or water, or to remove, restore or replace polluted land or water. “Toxic or radioactive contamination can involve severe and expensive debris cleanup and disposal problems.”
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