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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. 

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.

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.

The presence of asbestos fibers in siding is a critical health concern, as they can be inhaled and lead to severe respiratory issues. Even if asbestos siding appears to be in good condition, it may become a danger if it deteriorates over time or is disturbed during a renovation project, as this can release airborne fibers. Exposure to these fibers is linked to life-threatening diseases like asbestosis, mesothelioma, and lung cancer.