Oh No, There's Asbestos

A derecho swept through Iowa damaging the insured's siding, and it's going to require a complete removal and replacement of the siding. The contractor informed the adjuster that the siding contains asbestos. It wasn't disturbed by the windstorm and is safe now, but it will be disturbed when it's removed, so that's going to have to be done by specially-licensed professionals with hazmat suits according to procedure. The adjuster handling the claim is willing to pay for the siding replacement. However, she is not sure about all of those extra costs to handle and contain the asbestos. Notable Timestamps [ 00:16 ] - Today's scenario begins with a derecho which swept through-- wait, what is a derecho? An outlaw or a windy, violent, and quick thunderstorm? [ 00:43 ] - After reading down the policy exclusions in the 2011 ISO HO3, the adjuster saw (1) the pollutants exclusion and (2) the Ordinance or Law exclusion, and she is seeking information about whether either of those applies to the extra asbestos abatement costs.  [ 01:53 ] - Over the years, asbestos changed in the cultural imagination from a miracle substance to a frequent mention on the law firm commercial circuit. The material is still being found anywhere heat needed to be regulated. [ 04:26 ] - What laws should apply, and what about coverage? Generally, when you have a covered loss, the insurance company should include everything necessary to make that repair. [ 06:40 ] - Asbestos is a pollutant, but (1) the pollutants exclusion doesn't apply to a Coverage C peril, and (2) the pollutants exclusion doesn't apply where the pollutant hasn't been released. [ 07:46 ] - Laws do require the insured to respond to pollutants as described in the Ordinance or Law Exclusion, but it was intended for building code issues and applying it to asbestos would likely be too broad of an application. Common sense safety measures are part of replacement cost. [ 09:35 ] - The Ordinance or Law Exclusion has the anti-concurrent causation preface, which avoids any proximate cause analysis. [ 10:31 ] - Asbestos claims often come up in third party scenarios. Could this be a hint for a future podcast episode? [ 11:30 ] - What if an insurer decided not to cover anything related to asbestos? Courts tend to enforce plainly worded exclusions or special limits. [ 13:00 ] - Tim provides a recap of the scenario and the points above. Your PLRB Resources Coverage Question - Asbestos When There Is a Covered Loss - https://search.plrb.org/?dn=79659 Coverage Question - Asbestos Remediation - Pollutant? Ordinance or Law? - https://search.plrb.org/?dn=79806 Coverage Question - Asbestos Removal After Water Loss - https://search.plrb.org/?dn=74381 Employees of member companies also have access to a searchable legal database, hundreds of hours of video trainings, building code materials, weather data, and even the ability to have your coverage questions answered by our team of attorneys (https://www.plrb.org/container.cfm?conlink=sec/cq/default.cfm) at no additional charge to you or your company. Subscribe to this Podcast Your Podcast App - Please subscribe and rate us on your favorite podcast app YouTube - Please like and subscribe at @plrb LinkedIN - Please follow at "Property and Liability Resource Bureau" Send us your Scenario! Please reach out to us with your scenario! This could be your "adjuster story" sharing a situation from your claims experience, or a burning question you would like the team to answer. In any case, please omit any personal information as we will anonymize your story before we share. Just reach out to [email protected]. Legal Information The views and opinions expressed in this resource are those of the individual speaker and not necessarily those of the Property & Liability Resource Bureau (PLRB), its membership, or any organization with which the presenter is employed or affiliated. The information, ideas, and opinions are presented as information only and not as legal advice or offers of representation. Individual policy language and state laws vary, and listeners should rely on guidance from their companies and counsel as appropriate.   Music: "Piece of Future" by Keyframe_Audio. Pixabay. Pixabay License. Font: Metropolis by Chris Simpson. SIL OFL 1.1. Icons: FontAwesome (SIL OFL 1.1) and Noun Project (royalty-free licenses purchased via subscription). Sound Effects: Pixabay (Pixabay License) and Freesound.org (CC0).