My client incurred a substantial fire loss. The carrier declined lead and asbestos remediation from the damaged and undamaged building. Initially, it appeared this would be covered, but the carrier is specifically stating the lead and asbestos fall under pollutants and fungus. However, in many policies, if the carrier chooses to exclude lead and asbestos from the property form, it would be specifically stated on the Declarations page. In this case, the carrier never had this exclusion on the Declarations page. Would lead and asbestos remediation be covered on the main policy form or ordinance and law policy form?

Connecticut Subscriber

While lead and asbestos are indeed pollutants (but not fungi), there may be some coverage available for the situation you describe. The ISO Special Causes of Loss form, CP 10 30, excludes loss or damage caused by the dispersal of pollutants, but if the dispersal is caused by a specified cause of loss (fire is a specified cause of loss), then the resulting dispersal is covered. However, that is not the case if the pollutants spread to nondamaged portions of the building. The ISO Ordinance or Law Coverage endorsement, CP 04 05, states that there is no coverage for enforcement of ordinances or laws that require remediation of property due to contamination by pollutants, so nothing is available for this situation on that form.