Interior demolition for insurance purposes usually involves removing damaged elements within a building due to a covered peril. Here’s a breakdown of what you might need to know:
When is interior demolition covered by insurance?
Your insurance policy will dictate what qualifies for coverage. Generally, interior demolition might be covered if the damage is caused by an insured peril, such as:
- Fire: If a fire damages a significant portion of your building’s interior, your insurance might cover the cost of demolishing the burned or structurally unsound elements to make way for repairs.
- Water damage: Extensive water damage from burst pipes, flooding, or severe roof leaks could necessitate demolition of walls, ceilings, and flooring to prevent mold growth and facilitate drying and repairs.
- Windstorm damage: If a storm causes structural damage to your building’s interior, your insurance might cover demolition of compromised walls, ceilings, or other features to ensure safety and allow for repairs.
What does insurance cover in interior demolition?
The extent of coverage for demolition will vary depending on your specific policy. However, it might typically cover:
- The cost of demolition labor: This includes the fees paid to the licensed contractor hired to perform the demolition work.
- Removal of debris: Insurance might cover the cost of hauling away the debris generated during the demolition process.
What might not be covered?
It’s important to understand what your policy excludes. Here are some potential out-of-pocket costs:
- Abatement of hazardous materials: If the demolition involves removing asbestos, lead paint, or other hazardous materials, the abatement process might not be covered by your standard policy and could require additional insurance or come out of pocket.
- Building code upgrades: If the demolition reveals the need for upgrades to meet current building codes during the rebuild process, those costs might not be covered by your insurance.
Here’s what to do if you need interior demolition:
- File a claim with your insurance company: Contact your insurance provider to file a claim and discuss the damage. They will likely send an adjuster to assess the situation.
- Get estimates from licensed contractors: Once you receive guidance from your insurance company, obtain estimates from licensed and insured demolition contractors.
- Work with your insurance adjuster: Collaborate with your insurance adjuster to determine the approved scope of work and ensure the chosen contractor is approved by the insurance company.
- Understand your policy and coverage: Carefully review your policy and any exclusions related to demolition and hazardous materials abatement.
Remember, this is a general overview. It’s crucial to consult with your insurance provider for specifics regarding coverage and the claims process related to interior demolition.
