Does Homeowners Insurance Cover Asbestos Removal? What Policies Really Say

If you live in an older home that might have asbestos, a commonly used building material for floors, ceilings, and insulation, you may be wondering if asbestos removal insurance coverage is part of your policy. 

Asbestos is commonly found in homes built before the early 1980s because it was an incredibly durable product that offered both heat and fire resistance. However, if the product becomes disturbed, it can release fibers into the air that, when inhaled, can cause cancer and debilitating lung disease. Because of that danger, asbestos removal requires professional testing and licensed abatement to remove the product.

While it might seem like homeowners’ insurance would unquestionably cover asbestos — after all, it can’t be identified with the naked eye — the reality is that it’s not as simple as it might seem, and it depends on why the asbestos is being removed.

The Short Answer: Asbestos Removal Insurance Coverage Isn’t Guaranteed

When it comes to asbestos removal insurance coverage, the reality is that many insurance companies will only cover asbestos removal under certain conditions. Often, removing asbestos as part of a renovation to update a home’s aesthetics is not covered by insurance. Even if it’s precautionary, it’s often one of those things that won’t be covered unless it is uncovered during a covered event.

According to the Insurance Information Institute, a nonprofit organization that collects data and serves as an independent source of information for the insurance industry, covered events typically include common disasters like fire, lightning, windstorms, hail damage, explosions, vehicle damage (if a vehicle struck your home), and vandalism, among others.

When Insurance Might Cover Asbestos Removal

As mentioned, insurance may cover asbestos removal and mitigation if it is part of a covered event. This essentially means that it has to be discovered, meaning it was found suddenly and unintentionally. Here are a couple of cases in which homeowners could reasonably expect that their homeowner’s insurance would cover asbestos removal. As always, it is important to verify your coverage, specifically asbestos insurance claims could be denied if not included in your policy.

Fire Damage

Home fires are unfortunate, often devastating occurrences. If a fire or smoke from a fire damages the home, and there is material that must be removed that may contain asbestos, it will need to be tested. A situation could be smoke or water damage to the ceiling of a room. If it is found to contain asbestos, specialized, licensed removal is required, which removal may be covered as part of the fire damage repair claim. 

Storm Damage

Storm damage is another event that may extend coverage to asbestos testing and mitigation. For example, if a tornado were to impact a home and the event damages walls or ceilings that contain asbestos, remediation could be included under the tornado claim. Again, this is another instance where the discovery of asbestos was unintentional or accidental and not simply for aesthetic purposes. 

When Asbestos Removal Insurance Coverage Usually Won’t Work

Unfortunately, as much as we would like our expensive insurance premiums to go toward improvements to our home that increase the value and aesthetic appeal, that is simply not how it works. Insurance is there to cover unforeseen accidents, not planned remodels. 

Renovations

While it could be argued that discovering asbestos is an unforeseen occurrence, if it ultimately resulted from a planned renovation, the insurance company could say that you should’ve planned for it as a possibility. Before starting any renovations in an older home, homeowners would be wise to “plan for the unexpected,” as the old adage goes, setting aside funds for asbestos remediation in the event their policy doesn’t include asbestos removal insurance coverage.

Preparations to Sell

Another instance where insurance is likely to deny asbestos insurance claims is when a homeowner wants to remove something like popcorn ceilings or old asbestos tile that is in otherwise good condition before they get ready to list a home for sale.

Keep in mind that undisturbed asbestos, such as in the case of fully intact tile, is not harmful in and of itself. It becomes harmful when it is disturbed or otherwise becomes airborne. Insurers will simply consider those instances maintenance or improvement expenses, not a loss that should be covered. 

What is a “Pollution Exclusion” and Why it Matters

Insurance policies often contain a pollution exclusion that excludes known pollutants. Basically, insurance companies got together after the EPA identified environmental contaminants and said we aren’t paying for it — it’s something that has existed, and we aren’t going to cover the costs of changing the world. 

Asbestos is among the pollutants covered by pollution exclusion clauses, which is often why asbestos insurance claims are denied and why there isn’t general asbestos removal insurance coverage.

What Homeowners Should Do

If a homeowner is facing a situation in which they need to repair or replace materials that potentially contain asbestos as a result of a potentially covered event, they should first take a moment to review their insurance policy to see what’s covered and what isn’t. 

If a homeowner is planning a renovation, they need to budget for asbestos testing and remediation costs before starting the project, in case asbestos is found. Any suspected materials should be tested by a licensed professional.

Before disturbing any materials (or further disturbing them if they’ve already been disturbed as a result of another incident, like a weather event), homeowners would be best advised to review their policy to see if they have any asbestos removal insurance coverage at all in their policy. Any damage should be documented with time-stamped photographs. It would also be worth contacting your insurance agent to get their thoughts before moving forward.

Contact Asbestos Testing & Removal Experts

Ultimately, unless asbestos removal could be considered part of a covered event, it is likely that you would have to pay out of pocket. We recommend that any homeowners who don’t know what their asbestos removal insurance coverage contains or whether their asbestos insurance claims will be covered contact their insurance agent and check their policy to be sure. 

If you’re not sure whether your home contains asbestos, Asbestos Project Management can help with at-home asbestos testing or professional on-site sample collection and testing to determine what materials are in your home. We are committed to the highest levels of education and certification and are licensed by the Illinois EPA and the Illinois Department of Public Health. 

Contact Asbestos Project Management today for help with asbestos mitigation and testing in your home!