Pollutants — from mold to asbestos — can cause real damage to homes and businesses, but they might not always be covered by insurance.
Most homeowners and commercial policies contain some kind of pollution exclusion, which outlines what will and won’t be covered by the policy. This is meant to protect insurers from the often high costs associated with environmental cleanup and the lawsuits that sometimes stem from pollution events.
Pollution exclusions can be absolute, broadly denying coverage for injuries or damage related to pollutants, or they can be specific, denying coverage for defined pollutants or events.
Many exclusions contains exceptions. Common exceptions include hostile fire (when smoke, heat or fumes from a fire grow out of control), heating equipment and small, localized accidents.
It’s important to understand the pollution exclusion and what it does and doesn’t cover. And even then, things can be unclear. The definition of pollutant can be up for interpretation in many cases and can vary based on jurisdiction and specific policy language.
In the slideshow above, FC&S editors answer four questions about pollution coverage.
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