Debris Removal, Demolition and Resulting Hole
The insured suffered a total loss to their residence. The insurance company has agreed to cover the cost of demolition, however, they refuse to pay for the cost to fill and grade the hole left by the demo and debris removal. The insured is insured under a HO 0005 (10/00). The insurance company has taken the position that the fill is a claim for land and land is excluded under the policy. It is our position that the "land" exclusion applies to claims for damages to land. We are not claiming damage to land; rather we need to back fill the hole as part of the debris removal. I feel it should be covered for several reasons. (1) the land exclusion does not apply to fill (2) the insured is required to fill in the hole under the policy to protect the property from further damage (i.e. someone falling in the hole and getting injured resulting in a liability claim) and (3) because filling in the hole is required by local law and ordinance. The insured does have coverage for law and ordinance.
Michigan Subscriber
You are right in that the exclusion for land is for damage to land, not ensuing damage that is part of the repair; the building must be torn down before it can be reconstructed, and the hole caused by the demolition must be filled. This is all part of restoring the insured to his original position, the principal of indemnity. If a family of woodchucks had burrowed under the ground to where it collapsed leaving a gaping hole that would be excluded; that's damage to the land.