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Yes. Gutting a house to the studs may actually be a good option if you believe a home contains toxic materials like asbestos, mold, or lead paint. However, this must be done under the supervision of licensed remediation experts.

Typically, homeowners insurance does not cover asbestos removal or abatement. Most policies exclude coverage for pollutants, contaminants, and hazardous materials, which includes asbestos. Because asbestos is often considered a pre-existing condition in older homes, its removal is usually viewed as a maintenance expense rather than an insurable loss. However, there is a key exception: if asbestos-containing materials are discovered or disturbed due to a covered event, such as a fire or storm, your policy may cover the abatement as part of the necessary repairs. For example, if a storm damages your roof and an insurance adjuster discovers asbestos while inspecting the damage, the policy might pay for the removal cost. If removal is not covered and is outside your budget, you might consider encapsulating the asbestos. The viability of this option depends on the condition of the contaminated materials. It is recommended to speak with an asbestos abatement specialist to understand your options.

Asbestos encapsulation is an alternative to asbestos abatement or removal. Suppose you have hired an asbestos testing service and they recommend encapsulation. In that case, they will cover the asbestos with a protective barrier or put it in a sealed enclosure so the fibers cannot escape. Encapsulation usually costs between $2 and $6 per square foot.

When asbestos damages the lungs it causes a condition called “asbestosis” which, unfortunately, can’t be cured once it’s damaged the lungs. This condition is chronic and any treatment is undertaken to improve quality of life. This usually involves quitting smoking, being prescribed oxygen, and undergoing lung rehab. Severe cases usually require a lung transplant.