It depends on the policy that you have. There are generally two types of debris removal coverages in a homeowner’s insurance policy:

  • Specified Amount: If your homeowner’s insurance policy contains a separate, debris-specific clause, the local government will only collect the specified amount designated in the debris removal clause. These clauses are typically capped at a percentage of the coverage amounts listed in the policy (for example, 5 percent of the value of a primary structure, other structure, and personal property). You will not owe the local government any additional money, even if the actual costs to remove the debris exceeded the amount designated in your insurance policy for debris removal.
  • No Specified Amount: If your homeowner’s insurance policy does not have a separate, debris-specific clause and instead includes the costs of debris removal in the total coverage, the local government will only collect insurance proceeds for debris removal after you have rebuilt your home. The local government will only collect any available insurance proceeds, if any, after the rebuild. If there are no remaining funds, the homeowner will not owe the local government any additional money for debris removal.