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In most cases, homeowners insurance doesn't cover asbestos abatement. Insurance policies frequently exclude coverage for pollutants, contaminants, and hazardous materials, which include asbestos. It's considered a pre-existing condition in homes built before its ban, so removal is seen as a maintenance expense rather than an insurable loss. There may be an exception if the asbestos-containing materials are disturbed due to a covered event, such as fire or storm damage. Some policies may cover the abatement as a part of those repairs.

Asbestos siding can be dangerous if disturbed because the material itself poses a health risk. Asbestos is one of the leading causes of lung cancer as it causes mesothelioma—an aggressive cancer. Asbestos can also cause irreversible damage to your lungs by creating a buildup of scar tissue, called asbestosis. It has a habit of making its way through even robust personal protective equipment (PPE), which is why it’s not recommended that you perform any asbestos work yourself.

Although the use of asbestos has declined since the 1980s, it remains in several different types of building construction materials for insulation and as a fire retardant. Typically, asbestos can be found in materials such as ceiling and floor tiles, heat-resistant fabrics and coatings, and roof shingles. You may also find asbestos in textured paint and patching compounds.

It is legal to cover asbestos tile with new flooring. For some homeowners, this is a reasonable option to prevent asbestos fibers from spreading in the home and reduce health hazards. However, it’s a better long-term solution to completely remove asbestos from your home rather than cover it up.