My contractor found asbestos in my house, what now?

I bought my first house last year in an older neighborhood, because it was cute and affordable compared to newer homes. I hired a contractor a couple of months ago to do some remodeling (add a second bathroom and change a guest room to make the bathroom possible). He just got to the point of opening the guest room wall and moving a door, and according to him, there is asbestos. My house is from 1940, super sturdy, and the inspector never noticed anything weird. Will my home insurance pay to get this removed/fixed? I'm afraid this is going to be a huge expense for my first house, and I've never made any kind of insurance claim; I just don't know what to do next.

Usually, no, your home insurance probably will not pay to remove or fix asbestos if it’s discovered during a planned remodel.

That’s because homeowners insurance is meant for sudden, accidental damage, not pre-existing issues, maintenance, or hazardous materials uncovered during renovation. In older homes, asbestos can be hidden in insulation, flooring, pipe wrap, or other building materials, and finding it during construction usually is not considered a covered loss.

That said, there are some exceptions.

If asbestos is discovered during repairs for a covered claim, like hail damage, a fire, or a burst pipe, your policy may help pay for some of the added cost of handling it so the covered repairs can move forward. That can also make the claims process more complicated. Adjusters may need to separate the damage caused by the covered event from issues tied to the older material itself, which can slow things down a bit.

For now, the best next step is to stop work in that area and have a licensed asbestos professional inspect the material. They can confirm whether it is actually asbestos and explain whether it needs to be removed, sealed, or left alone.

It’s also a good idea to call your insurance company and ask how your specific policyhandles asbestos-related costs (you can ask questions without filing a claim). Coverage can vary a lot by insurer, and often, pollutants are specifically excluded.

This is a scary surprise, especially in a first home, but you’re doing the right thing by slowing down and getting answers before moving forward.