“As a rule of thumb, most homeowners’ policies have an asbestos abatement exclusion, so in most cases, it will not be covered. Home improvements can uncover many surprises and asbestos, unfortunately, can be one of them.
Before you start making changes, let your contractor know of your concerns. With asbestos, there are two options: removal or containment.
Containment is the much cheaper option. You may be able to adjust your design plan around any potential hazards.
The one exception to the exclusion is if asbestos abatement ends up being required due to a covered loss.
For example, let’s say your child clogs the upstairs toilet with their teddy bear (this is known to happen!) and causes a massive flood that ruins the downstairs ceiling. This is a loss that your insurance company will cover.
If, in the process of repairing your ceiling due to this covered loss, you discover asbestos, insurance would need to pay to have it safely removed.”