Peeling Back the Layers: Lead Paint, Safety & Home Insurance

Most homeowners insurance policies won’t cover lead paint removal unless it’s part of a covered claim. For example, if a kitchen fire damages your windows and walls, and lead paint is part of your kitchen, contractors could use lead abatement techniques when performing your repairs. 

Some insurance policies will cover the harm someone might experience from spending time in your lead-laden home. However, if you’re running a business (like a daycare) in your home, your coverage may not apply. 

Unfortunately, some insurance policies won’t approve any kind of lead claim at all, even those stemming from covered events. Reading your policy documents, including exclusions, is a critical part of your job as an informed homeowner. 

How Does Insurance Handle Lead Paint?

Homes built before 1978 may have lead paint. While everyone agrees that this substance is harmful, how insurance companies handle the problem varies widely. 

In general, homeowners insurance offers layers of protection against threats like fires, falling objects, wind, and hail.[1] Your home’s structure and your possessions can be repaired or replaced after a covered event. This chart can help you understand how lead typically fits into a traditional policy:

	Usually Covered	Sometimes Covered	Never Covered
Lead exposure due to wear and tear			X
Lead exposure due to a covered event (like a fire)	X
Liability for another’s injury		X
Replacing items coated with lead			X

After a Covered Event

Your homeowners insurance policy should cover the cost to repair or replace your home and your items when threats like fires, hailstorms, and falling trees cause damage. Your insurance company assesses the damage and issues a check for repairs. You hire a contractor to do the work. 

Sometimes, contractors spot lead problems during the repair process. If so, they need to take extra steps and care to keep your home safe while they work. Typically, fees associated with those services are covered by a standard homeowners policy. 

During Everyday Life 

Some homeowners discover lead problems when their children are tested for exposure. Others find lead when they’re starting work on a home improvement project. 

While the fees associated with removing or abating lead paint can be extensive, they’re rarely covered by homeowners insurance. Your insurance provider may consider these fees part of your expected expenses as a consumer. Similarly, your provider may not replace items covered with lead due to chronic exposure. 

Liability 

Lead can cause serious problems, especially in young children. If you’re sued due to lead exposure, your homeowners insurance may not protect you. That’s especially true if you’re running a business (like a daycare) in your home or renting a room to someone else. A standard policy isn’t designed to protect you from risks associated with private businesses. 

Understand the Role of Exclusions

Insurance companies can use special rules (or exclusions) to deal with expensive lead-related claims. All homeowners should read their policies carefully to find out how their coverage works. 

Some companies include robust lead exceptions.[2] If you have a policy like this, your company won’t pay for any type of lead claim, even if it’s part of a covered event. A plan like this also excludes lawsuits and damages from lead exposure happening on your property. 

Policies may have robust lead exceptions that apply only to landlords.[3] If you live in your home and rent out no part of it, you could file claims for lead help after a covered event. But if you rent out even part of your home, no lead help is available. 

Policy rules can vary from state to state.[4] Some don’t allow companies to exclude any lead coverage, while others are much more lenient. It’s critical to read your policy to understand how it works.

Why Does Lead Matter? 

Lead is a very toxic substance, and it’s especially harmful to children younger than 7 years old.[5] Even tiny amounts can cause intense damage. 

Lead exposure in children has been associated with the following health problems:[5]

• Learning disabilities
• Hyperactivity 
• Attention deficit 
• Irritability 
• Brain damage 

Older homes often have cracked, peeling paint. Children are exposed when they put their hands, feet, or toys in lead chips and transfer them to their mouths. Tiny lead particles can also become airborne and expose children with every breath they take. 

What to Do About Lead in Your Home 

If your house was built before 1978, you likely have lead in it. It’s your responsibility as a homeowner to be aware of the risks and take action to protect your family. The following options are available:

Inspections 

Some older homes are a mishmash of old and new construction. You may know you have lead somewhere, but you may not know exactly where. An inspection can help.

During an inspection, a licensed professional conducts a surface-by-surface investigation of your home to determine where lead is located and at what levels.[6] With this data, you can decide what to do next. 

Maintenance 

Lead paint becomes dangerous when it’s damaged. Inspect your home regularly, looking for evidence of chips and cracks. If you see them, you’ll need to take action. If the spots seem intact, dust them frequently with a wet cloth or paper towel.[7] 

Repair or Remodeling 

If the paint is cracked, peeling, or damaged, you’ll need to fix it. And if you’re remodeling an area in your home with lead paint, you’ll need to do the work safely. Follow these tips:[8]

• Wear protective equipment, like goggles and masks, when working in these areas. 
• Use plastic tarps and other barriers to keep lead contained in the working area.
• Use water to dampen all painted surfaces before sanding or scraping. 
• Don’t power wash painted areas. Be gentle. 

After cleaning and removing old paint, cover the area with a sealer and fresh paint. These simple steps could protect your family from further exposure. If you’re in doubt about your ability to handle the problem safely, call in a professional to do the work.

Large-Scale Projects

During lead abatement, contractors remove lead building components and replace them with new versions.[9] Contractors seal off the working area and use tools like HEPA vacuums and filters to control dust.[10] This work can be extremely effective in reducing lead levels, but it’s critical to work with a professional with lead experience. A new or unlicensed contractor could do a shoddy job that could cost thousands to fix. 

How to File a Lead Claim 

You’re not required to file a claim for a lead problem within your home. Instead, lead is included within the scope of a claim you submit for a covered event. 

Take these steps to file a claim:

1. Contact your insurance agent, and explain that you need to file a claim. 
2. Take photos and videos of all the damage you experienced. 
3. Gather receipts and supporting documents to share with your insurance company. 
4. Make temporary repairs (like boarding up broken windows) to prevent more damage. 
5. Meet with an insurance adjuster for an in-person inspection of the damage. 

If lead isn’t found (or included) in your original claim, you attempt to reopen the investigation and ask for more money. Your contractor should help you gather the data you’ll need to support the request for additional funds. 

You Can Handle Lead

While your homeowners insurance company may not cover routine lead removal projects, you’re not required to live with lead problems. Do your part to keep your home clean and free of flaking paint. Hire reputable contractors to help you remodel areas filled with lead paint. And ensure that any covered claims include at least some consideration for the lead inside your home.