Reasonable Repairs and Asbestos Removal

Our insured's home suffered water damage as a result of the main water line breaking just outside the home. Water and silt entered the home affecting drywall and personal property. A remediation company came in and cut out the wet drywall some 18″ above the floor. The drywall contained asbestos in the joint compound. The tear out of the drywall caused asbestos dust to migrate throughout the home.

The policy is an HO3 4-91 ISO. Does the abatement costs to deal with the “Discharge……” of the asbestos fall within the initial cause of the loss which by coincidence happens to be a named peril (#12)? Are damages caused to structural and/or personal property covered when they occur during the processes of “reasonable repairs” and attempts to prevent the damages from getting worse?

By the way, the removal of the drywall in our claim was a necessity to prevent mold. There was no foreknowledge of the asbestos.

New York Subscriber

Under the 1991 HO 03, under coverage A, discharge, dispersal etc. is excluded unless the release is caused by a peril insured against in coverage C. Coverage C is named perils and the accidental discharge or overflow of water does not include loss on the residence premises caused by accidental discharge which occurs off the residence premises. It sounds like the water main was off premises although I'm not totally sure. If it was, there's no coverage. If the main was on the premises then there is coverage, and the coverage for the dwelling repair would be covered as well since a coverage C peril was involved. However there is no coverage for the personal property since dispersal of pollution is not a covered peril.

 

 

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