Demolition Insurance

Insurance that is used to cover the costs of demolishing a building that is damaged by a peril, such as a fire or storm. Zoning requirements or building codes may require that a damaged building be demolished rather than repaired. Demolition insurance covers the cost of tearing down undamaged portions of a damaged structure.

Demolition insurance covers a building that is damaged, not necessarily pieces of a building that may cover the property itself after a storm or other peril. Property owners should also check their property insurance policies for a debris removal provision, which covers the cost of removing debris and pollution that may result from demolition.


Investment dictionary. . 2012.

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