Okay free estimate guy wants to charge $3000. says he has to tear open the ceilings to remove all asbestos. Keeping fingers crossed that homeowners insurance will cover at least 50%
Homeowner's insurance isn't going to pay squat. They don't cover upgrades to your house and removing the asbestos is, essentially, an upgrade. If there were a fire or a flood in that room, then they would cover the asbestos removal because it would be a necessary part of the repairs. They may cover the removal, but I doubt it. ...and they may just cancel your policy when they learn about the asbestos because they would be liable if someone got sick because of the asbestos.
How long have you owned this property? A dangerous asbestos situation is something that should have been disclosed to you at the time of the purchase. You'd have better luck going after the previous owner or the Realtor. Did you have the house inspected by a professional house inspector? If so, the condition should have been noted on the inspection report. If it wasn't, the inspector could also be liable.
PC