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While asbestos can’t be directly absorbed through the skin—the fibers are too big—skin contact can still produce symptoms. Contact dermatitis can flare up in sensitive individuals but in most cases, the danger from asbestos comes from inhaling the fibers, or dust, that is produced when asbestos is disturbed. If you touch asbestos by accident, immediately wash yourself and your clothes.

Asbestos has many beneficial properties, including fire resistance, strength, and chemical resistance. It is also an excellent insulator, which is why it was used in pipe insulation and other building materials for decades. For all its benefits, asbestos is dangerous for human health, which is why it was eventually banned from use in certain products.

if you install new siding on top of old asbestos siding, you may keep the fibers trapped, but it would not necessarily be considered encapsulation. To do so properly requires a professional, who uses a certain type of sealant that needs to be spread over the asbestos in a number of layers in order to trap all the fibers. Although you may be able to buy this sealant yourself, it is highly advised that, once you find asbestos, you call a pro immediately. 

No, but it’s common that they do. Gravity furnaces weren’t terribly efficient so wrapping either the ductwork in asbestos, the furnace itself, or both, was something done regularly. This allowed the system to retain more heat. At the time, this greatly enhanced the efficiency of the furnaces but it wasn’t until later that we became aware of just how carcinogenic and dangerous asbestos could be.