Insured sustained a leak in their refrigerator supply line. Insured explored the leak and pulled up the flooring around the leak. The flooring mastic contained asbestos. The insured, after exposing the mastic, continued living in the home for weeks, using the floor and walking over the mastic. Testing of the home has been done, which now has asbestos contamination throughout the home. A recommendation exists to pack out entire house and decontaminate the structure in its entirety.

 It appears the insureds actions, and lack of action, contributed to the extent of the loss.

 Do the actions of the insured give rise to a subsequent loss, or should the asbestos contamination be attached to the refrigerator leak?

California Subscriber

You have an interesting situation. If mold, fungus or wet rot resulted from the refrigerator and this occurred under the floor or behind a wall, there is coverage for that mold/fungus damage. While that section has an ensuing loss provision, which is what the asbestos exposure is, the ensuing loss provision states that ensuing losses are covered unless precluded by other provisions in this policy. Since pollution is excluded, that exclusion is going to override the ensuing loss provision. Therefore, there is no coverage for the loss. The ensuing loss provision is as follows. The emphasis is mine:

Under 2.b. and c. above, any ensuing loss to property described in Coverages A and B not precluded by any other provision in this policy is covered.

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