5-Star Demolition Insurers  

5-Star Awards 2021: Construction Insurance

Demolition insurance, also known as demolition contractor insurance or demolition business insurance, is a form of contractors’ insurance that covers demolition companies from legal exposure related to their demolition work. 

5-Star Excellence Awards

  • Agile Underwriting 
  • Burns & Wilcox 
  • CNA 
  • Totten Insurance Group 

What insurance do I need for demolition? 

Demolition contractor insurance is several policies that are deigned around unique risks, rather than one insurance policy. General liability insurance, however, is the most important kind of coverage you will need for demolition. Commercial general liability insurance, or CGL, will offer a wide range of coverage for property damage and injuries (property damage or injuries that happen as a result of your work or on your premises). For instance, commercial general liability would protect you if people are injured by explosives stored on your site, or if an explosion goes wrong and onlookers at the site are injured. Errors during blasting or improperly stored explosives can also damage nearby property, which, in either case, would make you responsible for paying bills for property damage or medical expenses to those injured or affected. CGL insurance will cover direct expenses for property damage and injury claims, as well as your financial settlements or judgments and legal fees if you get sued.  


To cover their unique risks, demolition contractors generally require other insurance policies, including: workers’ compensation insurance; equipment physical damage coverage; environmental liability insurance; excess liability insurance; commercial property insurance; business interruption insurance; and inland marine insurance.   


How much does demolition insurance cost?  

Based on size, location, sales, experience, and payroll, the cost of an average $1 million-$2 million general liability insurance policy for small demolition contractors in the U.S. can range from $67-$109/month.  


Does homeowner’s insurance cover demolition?  

A typical homeowner’s policy might cover debris removal and demolition, depending on the policy type and state (in the U.S.). One of the more common policies, HO-1, will cover damage from windstorm (unless you live in a hurricane zone), fire, lightning, hail (not available everywhere), riots, explosion, civil commotion, vehicles hitting a house, aircraft, vandalism, smoke, theft, malicious mischief, and volcanic eruption. HO-2 policies will add cover for the weight of ice, snow, or sleet, falling objects, flooding from appliances, HVAC, plumbing, or a fire-protection sprinkler system, glass breakage, an abrupt collapse, and damage to electrical parts resulting from artificially generated electrical currents (i.e., power surges not caused by lightning).  


A policy could provide coverage for demolition, but only up to a percentage of the price of rebuilding. If you have $100K worth of damaged covered under the policy, for instance, and 25% coverage for demolition, you would receive $25,000 less your deductible. Debris damage operates in a similar way. 


What is debris removal coverage?  

A section of a property insurance policy, debris removal insurance provides reimbursement for clean-up costs associated with property damage. Usually, policies that include a debris removal provision cover debris from an insured peril, like twisted metal or charred wood from a building fire, for instance.  


Generally, debris removal coverage has a limit to the amount of reimbursement a policyholder can get back for the costs of debris removal. The policyholder is usually able to buy more coverage, although debris removal is typically included in most policies as a standard provision. The policy provision could also extend to removing hazardous materials that might cover the property but omit pollutants. While calculating the cost of replacing or repairing property following damage or destruction, the cost of debris and clean-up removal are added to the value of the damaged property, as opposed to being a part of it. Because of this, the coverage limitations on those costs in standard property insurance policies, and the impact on the total amount of the loss, are usually overlooked when initially arranging coverage.  


What is not covered by most homeowners insurance?  

Homeowners insurance is a collection of coverages that could help you pay to replace or repair your belongings and home, should they be damaged by certain perils, like theft or fire. It could also help you cover the costs if a visitor is injured at your home or you accidentally damage another person’s property.  


Typically, homeowners insurance will help cover your dwelling, other structures on your property, your personal property, and liability for damage to someone else’s property or injuries. Potentially, you could also buy added coverages for more protection. Homeowners insurance policies generally cover damages caused by lightning strikes, fires, hail, and windstorms. It is crucial to note, however, that homeowners insurance does not cover all natural disasters. Damages resulting from floods and earthquakes, for instance, are usually not covered by homeowners insurance. You would have to buy separate policies to protect your belongings and home against those specific risks.  


What is covered by property insurance?  

Property is a general term for policies providing either liability coverage or property protection coverage for property owners. Property insurance reimburses the renter or owner of a structure and its contents in the event of damage or theft, as well as to a person (who is neither the renter or owner) who is injured on the property.  


Property insurance can include a series of policies, like renters insurance, homeowners insurance, earthquake insurance, and flood insurance. A renters or homeowners policy will typically cover personal property, the exception being personal property that is high in value and expensive, which is usually covered by buying a “rider”, an addition to the policy. In the event of a claim, the property insurance policy will reimburse the policyholder either for the replacement cost to fix the issue or the actual value of the damage.   


What is Coverage C on a dwelling policy?   

Coverage C, otherwise known as personal property coverage, is a part of a home insurance policy and acts as a safety net for your personal belongings. Should your personal property get damaged, lost, or stolen, this policy will help to replace or repair them.  


Most commonly, the perils this type of policy will cover include vandalism, fires, theft, tornadoes, hail, and hurricanes. It will also cover your personal belongings both within your residence or on your property, such as furniture, computers, TVs, clothes, and jewelry. 

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