Does home insurance cover asbestos?

Home insurance will not cover the costs for anything asbestos related. The only exception is if it’s needed as part of a broader claim.

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Nicola Middlemiss

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Key takeaways

  • If you need to remove asbestos from your home or you've been affected by asbestos, home insurance will not cover you for this.
  • You would only be covered if the asbestos removal is occurring as part of a broader claim. E.g a fire destroyed your living room and now it's being rebuilt and asbestos management is needed for this.
  • Asbestos is very dangerous and you should do all you can to avoid exposure, even if home insurance can't help you.

Why doesn't home insurance cover asbestos?

Asbestos is in around one third of Aussie homes. If home insurance companies paid for asbestos removal in all of them, premiums would skyrocket. So instead, insurance companies generally rule out any asbestos-related costs.

There is one exception to this. If part of your home needs to be repaired due to a different claim that has been accepted, your insurance company should cover the proper removal of this asbestos. However, they'll only remove the asbestos from the area of the home that needs repairs.

How can I protect my home from asbestos?

If you think you've got asbestos in your home, don't immediately panic. As long as it's left undisturbed, asbestos is relatively harmless. However, if you have a home which was built before 1990 or are thinking about buying a home from that period, you should get an asbestos survey from a licensed assessor. It may even be a government requirement before any renovation or demolition.

Safely removing asbestos is complicated and highly regulated. You'll need to get a licensed builder in to do the work and dispose of it legally. It is far too dangerous, and there are massive penalties, if you skip this step.

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Journalist

Nicola Middlemiss is a journalist with nearly a decade of experience in personal finance and insurance. She has contributed to Domain, Yahoo Finance, Money Magazine and Insurance Business Australia, offering in-depth insights into commercial insurance in the Australian market. Nicola holds a Bachelor’s degree in English from the University of Leeds and a Tier 1 General Insurance (General Advice) certification, which complies with ASIC standards. See full bio

Nicola's expertise
Nicola has written 256 Finder guides across topics including:
  • Personal finance
  • Personal insurance, including car, health, home, life, pet and travel insurance
  • Commercial business insurance
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