Pay $5000 to change asbestos siding or $400/yr more for insurance

[Thuy Pham-Satrappe]

Deciding whether to invest an additional $5000 toward covering asbestos siding to decrease my insurance cost by about $400/ year. Assuming rates stay the same (or increase equally each year) it would take about 12 years for the cost to break even.

While my intention is to keep the property long term, I feel that $5000 could be "better spent" from a short term perspective for something such as adding AC or using the $5000 toward another property.

Would appreciate additional perspective/ insight/ cost/ value analysis!

[Luke Carl]

I was unaware asbestos siding would raise insurance rates thanks for that info. You might call another insurance company first. 

I think I’d leave the siding as is and put it towards another property. 

[Brian Pulaski]

Have you shopped other insurance companies?

[Theresa Harris]

@Thuy Pham-Satrappe  I'd also suggest calling other insurance companies.  If the siding is in good condition and doesn't need to be replaced, I'd just leave it.

[James Wise]

Originally posted by @Thuy Pham-Satrappe:

Deciding whether to invest an additional $5000 toward covering asbestos siding to decrease my insurance cost by about $400/ year. Assuming rates stay the same (or increase equally each year) it would take about 12 years for the cost to break even.

While my intention is to keep the property long term, I feel that $5000 could be "better spent" from a short term perspective for something such as adding AC or using the $5000 toward another property.

Would appreciate additional perspective/ insight/ cost/ value analysis!

 Rip off the band aid. Pay the $5k. Lowers your cost and risk while increasing resale value.

[Thuy Pham-Satrappe]

@Lucas Carl @Brian Pulaski I went to 2 different brokers and they both came back with the same company (which from what I understand is the only one in the area that will allow asbestos siding)

[Jill F.]

I'm surprised they'd charge extra for that. The stuff is fire resistant and impervious to insects and rot. As long as it's not friable it shouldn't pose a health risk-- did they say why? As other have suggested, have your agent shop other insurance companies.

[Thuy Pham-Satrappe]

@Theresa Harris I realized both brokers quoted the same company so I will see if i am able to find another who will insure the property. Thanks!

[Russell Brazil]

Ive had properties with asbestos siding and did not pay any more for insurance. In fact the asbestos siding saved my house from burning down when the house next door caught on fire.

[Harriet Baldwin]

If there is a local insurance cooperative (or local mutual insurance company), check those out.  In our region there are a couple and they can be a bit more flexible/landlord friendly.  But each company has their "quirks" - one doesn't do student rentals, pools or trampolines; the other will do trampolines but won't do manufactured homes...

[JD Martin]

Given that choice, I would probably re-side since a good quality siding will update the house and should be recoverable in costs. But as with Russell, it hasn't made any difference in my insurance either. Asbestos shingle siding was pretty popular around here in the 40s-60s. 

[Ned J.]

If you cant find another insurance company that doesn't charge more, then I'm with James......

Pay $400/year now and probably have to address the siding sooner or later in some way.......so spend the 5k now, add value to the house, and save $400/year that is "gone"....at least the 5k adds to the value of the property

[Steve B.]

@Thuy Pham-Satrappe you can get normal insurance that doesn’t charge extra for asbestos siding. Looks like you got bad advice. I’m also assuming there is no way this property is in San Clemente

[Steve B.]

@Thuy Pham-Satrappe also confused what 5k is going to do. No one is going to remediate and replace siding on even a small house for 5k. Something is off with these facts

[Josh C.]

@Steve B.

Assuming encapsulation not removal. Your are right removal would be a ton. Probably seal it (maybe not even that) and vinyl over for that price.

[Joe Splitrock]

@Thuy Pham-Satrappe this is a quick decision for me. Pay $5000 to remove the safety risk, which is decreasing the value of your property. Paying $400 a year just to band aid the problem is wasted money.

I learned long ago that it is better to deal with problems properly. This isn't an "ROI" question, but rather a safety and maintenance issue that needs attention. You want to reduce risk, not pay more to insure yourself for risk.

[Thuy Pham-Satrappe]

@Steve B. This is for a property in Hartford City Indiana and it would be to go over the siding and not replace it

[Brian R.]

I had the same issue a few years ago.  I had Allstate for all my properties.  I have one with asbestos siding. Allstate told me because of the siding, they were dropping me when my policy ended.  They said it was because if damaged, they couldn't repair it, they would have to pay to reside the entire property.

I went to an independent agent, one of the application questions was do I have asbestos siding. He was finally able to find one company that would insure me, Foremost, and it cost me about $500.00 more a year than I was paying Allstate for that property.  I have since went to another independent agent, and he was able to find another company, Travelers, that would insure the property, and it was about $500.00 less than what Foremost was charging me.

Go to a third agent and see what they can do.

[Thuy Pham-Satrappe]

@Brian R.thank you! Foremost was what both independent brokers quoted me (because I was also looking for $1M liability and apparently they are the only ones who will go that high. I have asked to see different companies