What additional limit does the debris removal coverage provide if the limit of insurance is exhausted?

The debris removal coverage in a commercial property policy is designed to assist with the costs associated with clearing debris resulting from a covered loss. If the limit of insurance for the property is exhausted due to a loss, there is typically a provision that offers an additional amount for debris removal, which serves as a safety net to help ensure that insureds can complete the necessary cleanup process.

In this context, the correct answer indicates that if the initial limit of insurance is utilized fully during the recovery process, an additional limit of $25,000 becomes available specifically for debris removal expenses. This extra coverage is crucial because it can significantly impact the ability of the insured to manage recovery effectively without the financial burden of covering debris removal costs entirely out-of-pocket.

Understanding this additional limit emphasizes the importance of reviewing the details of the insurance policy, as these provisions can vary and have a direct effect on recovery strategies following a loss. In this case, recognizing that the debris removal coverage includes a substantial additional amount ensures that policyholders are aware of the resources available to them in the aftermath of a claim.