Debris Removal under Commercial Property Form

Q

We would like your opinion concerning coverage for debris removal under form CP 00 10 04 02. Our insured owns an apartment building which suffered a windstorm loss. The storm blew a major portion of the roof onto adjacent properties, and the question is whether the insurance policy will pay the insured his expense in removing this debris from his neighbors' property. Please give us your thoughts.

New York Subscriber

A

Yes, there is coverage for this expense. The insured is protected under the insuring agreement of form CP 00 10 for the “expense to remove debris of covered property caused by or resulting from a covered cause of loss.” The insured's apartment building represents the covered property, the windstorm represents the covered cause of loss, and the parts of the insured's building scattered throughout the neighborhood represent debris of covered property.

The covered property (the apartment building) must be located “at the premises described in the declarations ” to be in compliance with the agreement for coverage A. However, the additional coverage relating to the expense for debris removal carries no statement about location. Indeed, it should not, because debris from covered property often winds up on neighboring ground.

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