Home Insurance and Demolition Cost

Every home insurance quote begins in a conversation with the home owner or buyer.  I take the time to understand how the home is finished out such as the number of bedrooms, bathrooms, type of floor coverings, roof type, etc.  This information is then entered into the replacement cost system for each insurance company we work with which in turn generates a home’s replacement cost value.

The home’s replacement cost value is the amount the home is insured for and should provide enough coverage to replace the home in the event of a total loss.  In addition to rebuilding the home from scratch, the insured amount must also cover the demolition of the home and the removal of all debris.

I was curious as to what the cost of home demolition and debris removal runs in the Dallas / Fort Worth area so I met with Johann Ferguson owner of Junk King in Dallas.  Junk King provides a variety of services including hauling away almost anything that a homeowner may need taken to the dump.  They also will demo a kitchen or bath for someone’s home remodeling project and even demo an entire house for a tear down rebuild project.

Johann’s crew had torn down a small home the previous day in north Dallas.  It turns out there are many things that determine the cost of demolition and debris removal including:

• The home’s square footage
• Foundation type (slab or pier and beam)
• Does the slab need to be removed
• Presence of a basement
• Siding type (wood frame, brick, stucco, etc.)
• Number of stories
• Do the driveway and sidewalk need to be removed
• Presence of a pool or trees and whether they need to be removed

There are other items that influence the cost of demolition and debris removal including where the home is located.  Different municipalities in the Dallas / Fort Worth area charge different rates for home debris.  For example, Dallas charges $21 a ton while Garland charges $47 a ton.  In addition, rates may vary for homes in the Park Cities, Willow Bend, etc.

The home Junk King demolished the day before we met ran about $5.00 a square foot (rates range from $4 to $10 a square foot based on the above mentioned factors) for demolition and debris removal (there was an additional fee for removing three trees before the home could be torn down).  The most expensive home demolition I’ve seen in the past 5 years came in at $35,000 for a home that was a total loss due to a fire.

I’ve understood the importance of insuring a home properly since I became an insurance agent.  I also understood the importance of there being enough home insurance to cover demolition and debris removal in addition to rebuilding but Johann provided me with a better understanding of the factors that influence the cost of debris removal, as well as a practical range for the costs of demolition and debris removal.

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