A wildfire swept through my property and completely destroyed my tiny home. My insurance paid the $60,000 policy limit for the structure, but what remained was a twisted steel trailer frame, a melted solar power system, and soil contaminated with toxic ash. A hazardous-waste cleanup company quoted me $15,000 to remove the debris. My policy’s debris-removal coverage was capped at $3,000, leaving me $12,000 out of pocket just to make the land safe again.
Key Takeaways
- Tiny Homes are “Dense” Debris: Unlike a wood house that burns to ash, a tiny home leaves a heavy steel chassis, axles, and often lithium batteries (hazmat). Disposal is expensive.
- The 5% Trap: Standard policies cap debris removal at 5% of the Coverage A limit. On a small policy ($50k), that’s only $2,500. Not nearly enough.
- Hazmat Costs: If your batteries melt or your siding contained specific chemicals, the EPA might mandate a specialized cleanup.
- Towing the Wreck: Sometimes, “Debris Removal” can pay to tow the wreckage to a scrap yard. Verify this interpretation with your adjuster.
The “Why” (The Trap)
The trap is “Policy Limits Math.”
On a $500,000 house, 5% is $25,000. Plenty to clear the lot.
On a $50,000 tiny home, 5% is peanuts. But the cost to deploy a dumpster and a hazmat crew is fixed. It costs the same to mobilize the crew for a small fire as a big one.
You are underinsured for the cleanup because the math doesn’t scale down linearly.
The Investigation (My Analysis of Endorsements)
How to get more cleanup cash.
Foremost
- The Option: You can often increase “Additional Coverages.”
- The Fix: Ask for a specific “Debris Removal” increase to $10,000. It might cost $20/year.
Lloyd’s
- The Reality: Strict limits. Sometimes they include debris removal within the total limit (not in addition to).
- The Math: If your limit is $60k and the house was worth $60k, you get $0 for debris because the limit is exhausted. You need a policy where debris is “In Addition To” the limit.
Scrap Value
- The Hack: The steel trailer frame has scrap value. You might be able to get a scrap metal guy to take it for free (or pay you), reducing the cleanup cost.
[IMAGE: Photo of a burnt-out tiny home chassis with twisted metal and ash, with a “Hazmat Cleanup Quote” overlaid]
Comparison Table
| Feature | Standard Policy (5%) | Enhanced Policy |
| Dwelling Limit | $60,000 | $60,000 |
| Debris Limit | $3,000 | $10,000+ |
| Hazmat Covered? | Limited | Yes |
| Frame Removal | Out of Pocket | Covered |
Step-by-Step Action Plan
- Check the “Additional Coverages” Section: Look for “Debris Removal.” Is it a percentage or a flat dollar amount?
- Increase the Limit: Call your agent. “I want to ensure I have at least $10,000 for debris removal.”
- Batteries are Hazmat: If you have a massive Lithium bank, tell your agent. You might need specific pollution coverage.
- Don’t Touch the Ash: Toxic ash (plastics/insulation) can cause health issues. Let the pros handle it. Insurance pays for the pros (up to the limit).
FAQ
Can I just bury it?
Illegal in most places. If you get caught, the fines are massive.
Does the city clean it up?
If you don’t, they will. Then they will lien your land for the cost (which is usually double the private rate).
Is the trailer frame worth money?
Yes. Heavy steel. Don’t pay someone to take it until you call a scrap yard. They might pick it up for free.