What a lead exclusion actually does
A lead exclusion removes coverage for bodily injury, property damage and related claims arising from lead, including lead-based paint. On most forms it removes the insurer’s duty to defend as well, which means you would pay your own attorneys from the first dollar.
Lead claims often involve children, can be filed years after exposure, and can be expensive to defend. That is why many habitational carriers exclude lead entirely on older buildings.
Your umbrella or excess policy usually follows the same exclusion. It rarely fills the gap.
How to tell if your policy has one
- Look in the endorsements list for titles that mention lead, lead-based paint or lead contamination.
- Check the pollution exclusion, which on some forms is written broadly enough to reach lead.
- Read the umbrella or excess policy too.
- Or send us the policy and we will tell you.
The federal rules every owner of older housing should know
Under the federal Lead-Based Paint Disclosure Rule (Section 1018 of Title X), landlords of most housing built before 1978 must disclose known lead-based paint and lead hazards to tenants, provide any available records and reports, give tenants the EPA’s lead pamphlet, and include a lead warning statement in the lease.
The EPA’s Renovation, Repair and Painting (RRP) Rule also requires that renovation work disturbing painted surfaces in pre-1978 housing be done by certified firms using lead-safe work practices.
Many states and cities go further with their own inspection or certification requirements. Following these rules doesn’t create insurance coverage, but it reduces the chance of a claim and gives you a much stronger defense if one is filed.
What you can do
- Ask about limited lead coverage. Some carriers will offer a sublimit or a buyback for buildings that have been inspected, abated or certified lead-safe.
- Document your compliance. Keep signed disclosure forms, pamphlet receipts, inspection reports and contractor certifications organized by unit.
- Use certified renovators for any work that disturbs paint, and keep their certificates.
- Consider abatement or interim controls on units with known hazards, especially where children live.
- Review your entity structure with your attorney, since you may be paying for these claims without insurance.
Lead is one of several common habitational exclusions. Assault and battery, habitability and animal liability are others. See our multi-family insurance guide for the full list and what to ask.