Asbestos home insurance

Unfortunately, most home insurance policies will not cover damages or liability related to asbestos.

Home Insurance

Key takeaways

  • Asbestos is super bad and can cause cancer - you should try to avoid it.
  • Heaps of older Aussie buildings have asbestos in them, which can be a problem when renovating.
  • Unfortunately, most home insurance policies will not cover damages or liability related to asbestos.

What is asbestos?

Asbestos is a material which was used widely in building and manufacturing before the 1980s. While asbestos was considered affordable and durable decades ago, we now know that direct exposure to asbestos is very dangerous. Several types of cancer have been linked to asbestos exposure, as well as other diseases such as mesothelioma and asbestosis.

The good news is asbestos was thankfully banned in Australia in 2003. The bad news is it's still present in a tonne of older homes and buildings. That causes issues for home renos, as well as for home insurance.

How can I protect my home from asbestos?

If you reckon you've got asbestos in your home, don't immediate flip. 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.

The survey will help you identify if asbestos is there and the condition it's in, as well as offering guidance on how to manage the risk. If you're uncertain whether certain products in your home contain asbestos, you should always treat them as if they do. That basically means leave them alone, unless you're getting it properly removed.

On the subject of removal - 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. There are massive penalties if you skip this step. Also there's that risk of cancer we talked about.

Why doesn't home insurance cover asbestos removal?

Asbestos is in around one third of Aussie homes. If 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.

Does that mean home insurance isn't worth it? Well, no. Home insurance still covers a tonne of useful stuff, including flood, fire and storm damage. Asbestos isn't the only thing threatening your place. Compare home insurance for free here.

Frequently asked questions

Nicola Middlemiss's headshot
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 241 Finder guides across topics including:
  • Personal finance
  • Personal insurance, including car, health, home, life, pet and travel insurance
  • Commercial business insurance

Ask a question

You are about to post a question on finder.com.au:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com.au is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Terms Of Service and Finder Group Privacy & Cookies Policy.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

More guides on Finder

Go to site