Drywall Victims Face Homeowner Insurance Non-renewal
October 14, 2009 by Be Safe Insure
Filed under Homeowner's Insurance
Oh it had to start somewhere, and here it is: at least 2 home insurers in Florida have started to drop insurance policy holders who have made claims for property damage that related to toxic drywalls imported from the PRC. Is it just? The verdict is still out.
These cases of homeowners insurance non-renewal relate to approximately 100,000 residential buildings have been made in the period of 2006-2007, which have used a particular Chinese drywall that is now under investigation by US Federal & State agencies. The accusation is that this drywall emits sulfide fumes, which cause health problems as well as corrosion of electrical wires and plumbing.
To recover damage, policy holders have filed claims with their insurers. However, insurers deny coverage as they hold that such property damages are excluded from coverage under their policies as this is an issue of pollution and building defect.
Taking things a step further, some insurers warned policy holders who made claims that their coverage would not be renewed if the damage was not repaired within 6 months of the notice. To replace drywalls & related corroded housing elements, homeowners face a cost of $80,000-$100,000.
Now, two insurers have actually taken action and have dropped clients. There are two such cases now, and there might be more to come. The drywall is currently under investigation.
Chinese Drywall under Investigation
“The Chinese drywall, also known as gypsum or wallboard, is under investigation by federal and state agencies, including the Consumer Product Safety Commission, for emitting sulfide fumes suspected of causing corrosion of electrical wires and plumbing.
Many affected families also have reported health symptoms, including skin irritation and respiratory difficulties, to the CPSC and state health agencies. As many as 100,000 houses across the country, most built in 2006 and 2007, may be affected based on estimates of the amount of drywall imported into the U.S. during the period.
Citizens Property Insurance Corp., a state-created, nonprofit corporation in Tallahassee that is the largest home insurer in Florida, confirmed that it has notified some policyholders who recently had filed claims for damage linked to Chinese drywall that their policies won’t be renewed if the damage isn’t repaired within six months of the date of notice. Citizens also holds the position that the claims aren’t covered.” reports the Wall Street Journal.”
The full story is today at wsj.com.
