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It can be safe to live in a house with asbestos as long as the asbestos-containing materials are intact, in good condition, and not disturbed. Asbestos becomes dangerous only when its fibers are released into the air, which happens if the material is damaged, crumbling, or disturbed during renovation work. If you suspect asbestos is present, do not disturb it. Instead of removal, materials in good condition can sometimes be encapsulated. It is recommended to have regular professional inspections to monitor the condition of the asbestos and prevent health risks from potential exposure.

According to the Environmental Protection Agency (EPA), hazardous waste is generally classified into four main categories:

1. Characteristic Wastes: These exhibit at least one of four hazardous traits: ignitability (flammable, like gasoline), corrosivity (can rust or decompose materials, like car batteries), reactivity (unstable and can explode, like aerosol cans), or toxicity (harmful when ingested, like lead-based paint).

2. Listed Wastes: These are specific wastes from manufacturing and industrial processes that the EPA has officially designated as hazardous. They include byproducts from processes that use solvents, pesticides, and other chemicals.

3. Universal Wastes: These are commonly generated hazardous items that are subject to streamlined regulations. Examples include batteries, pesticides, mercury-containing equipment (e.g., bulbs), and some lamps.

4. Mixed Wastes: This category includes waste that contains both hazardous and radioactive components, making it subject to regulation by both the EPA and the Nuclear Regulatory Commission.

You can cover asbestos siding with another type of siding, such as vinyl, however, this may not be the best option. Covering the asbestos siding may disturb it, releasing fibers into the air. The covered siding can also be disturbed at a later date, such as by a new homeowner who is unaware of its presence.

If you decide to cover the siding, be sure to work with a professional and follow any local building codes and requirements. It may be the case that removing the asbestos siding is the better option, rather than covering it over. 

You are not really supposed to seal asbestos with paint, but in theory it could work—the caveat being that this is extremely dangerous and should be avoided at all costs. The only real way to seal asbestos is with the professional application of an encapsulating material like epoxy. Due to the negative effect asbestos can have on your home, however, it is usually the best course of action to accept a costly fix and remove the material entirely.