OT - Insurers dropping Chinese drywall policies

>Anyone buying a house now or in the future should read this article.
>Bear this in mind if you sheetrock your shop in the future.
>TMT
>Insurers dropping Chinese drywall policies
>By BRIAN SKOLOFF, Associated Press Writer Brian Skoloff, Associated
>Press Writer
>Thu Oct 15, 2:10 pm ET
>WEST PALM BEACH, Fla. – James and Maria Ivory's dreams of a relaxing
>retirement on Florida's Gulf Coast were put on hold when they
>discovered their new home had been built with Chinese drywall that
>emits sulfuric fumes and corrodes pipes. It got worse when they asked
>their insurer for help — and not only was their claim denied, but
>they've been told their entire policy won't be renewed.
>Thousands of homeowners nationwide who bought new houses constructed
>from the defective building materials are finding their hopes dashed,
>their lives in limbo. And experts warn that cases like the Ivorys', in
>which insurers drop policies or send notices of non-renewal based on
>the presence of Chinese drywall, will become rampant as insurance
>companies process the hundreds of claims currently in the pipeline.
>At least three insurers have already canceled or refused to renew
>policies after homeowners sought their help replacing the bad
>wallboard. Because mortgage companies require homeowners to insure
>their properties, they are then at risk of foreclosure, yet no law
>prevents the cancellations.
>"This is like the small wave that's out on the horizon that's going to
>continue to grow and grow until it becomes a tsunami," said Florida
>attorney David Durkee, who represents hundreds of homeowners who are
>suing builders, suppliers and manufacturers over the drywall.
>During the height of the U.S. housing boom, with building materials in
>short supply, American construction companies turned to Chinese-made
>drywall because it was abundant and cheap. An Associated Press
>analysis of shipping records found that more than 500 million pounds
>of Chinese gypsum board was imported between 2004 and 2008 — enough to
>have built tens of thousands of homes. They are heavily concentrated
>in the Southeast, especially Florida and areas of Louisiana and
>Mississippi hit hard by Hurricane Katrina.
>The defective materials have been found by state and federal agencies
>to emit "volatile sulfur compounds," and contain traces of strontium
>sulfide, which can produce a rotten-egg odor, along with organic
>compounds not found in American-made drywall. Homeowners complain the
>fumes are corroding copper pipes, destroying TVs and air conditioners,
>and blackening jewelry and silverware. Some believe the wallboard is
>also making them ill.
>The federal government is studying the problem and considering some
>sort of relief for homeowners.
>Meanwhile, the AP interviewed several homeowners who, like the Ivorys,
>were unlucky enough to purchase properties built with Chinese drywall,
>and are now being hit with a second and third wave of bad news: Their
>insurers are declining to fill their claims, then canceling the policy
>or issuing notices that policies won't be renewed until the problem is
>fixed. The homeowners have little recourse since neither the Chinese
>manufacturers nor the Chinese government are likely to respond to any
>lawsuits or reimburse them for the defective drywall.
>In each instance, the insurer learned of the drywall through a claim
>filed by the homeowner seeking financial help with its removal.
>The Ivorys have sued their builder, but it could take months for their
>case and hundreds like it to work their way through the courts. In the
>meantime, they have moved back to Colorado because their three-bedroom
>ranch home two miles from the Gulf of Mexico is unlivable and soon
>will be uninsured.
>"It's been an emotional roller-coaster," said James Ivory, who is
>still making mortgage payments on the house. "It was all in our heads,
>nice weather down there, calm life, beaches. Now I don't know what to
>do."
>John Kuczwanski, a spokesman for the Ivorys' insurer, Citizens
>Property Insurance Corp., said their claim was denied because the
>drywall is considered a builder defect, which is not covered under the
>policy. It also considers the drywall a pre-existing condition that
>could lead to future damage, which is why the company won't renew the
>policy unless the problem is fixed.
>"If someone were to have bought a new car and there was a defective
>part, would that person go to their auto insurance to get that fixed
>or would they go back to the manufacturer?" Kuczwanski said. "We
>provide insurance, not warranty service."
>Citizens, a last-resort insurer backed by the state of Florida for
>people who can't find affordable coverage elsewhere, has received 23
>claims about Chinese drywall, and has so far denied five. Citizens
>could not immediately say how many policies had been canceled or not
>renewed because of the drywall.
>Robert Hartwig, president of the Insurance Information Institute,
>agreed that homeowners policies were never meant to cover "faulty,
>inadequate or defective" workmanship, construction or materials.
>Tom Zutell, spokesman for the Florida Office of Insurance Regulation,
>said the cancellations are troubling, but legal. No law prevents
>insurance companies from canceling policies because of Chinese
>drywall.
>"We are staying out of the fray at the moment," he said.
>Even if a homeowner does not file a claim over the drywall and remains
>covered, they could later be denied a claim for a fire or another
>calamity if insurance investigators determine the home contained
>undisclosed Chinese drywall.
>"If you think that by not telling your insurance company about the
>drywall that you're protected, you're sadly mistaken," Durkee said.
>A newly married couple in Hallandale Beach, Fla., saved up for five
>years to buy their first home only to later discover it had Chinese
>drywall. They filed a claim with their insurer, Universal Insurance
>Co. of North America, and were denied.
>Universal then sent the couple a letter, stating their policy was
>being dropped because "the dwelling was built with Chinese drywall."
>The couple then signed on with Citizens, but didn't divulge the
>drywall issue, and hasn't filed another claim. The 31-year-old man
>requested anonymity because he's afraid of losing his insurance
>policy, and thus his home.
>"I honestly don't know what I'd do if that happened," he said. "All
>this has basically taken us back five years. We saved money to buy
>this home."
>Universal did not respond to requests for comment.
>Louisiana lawyer Daniel Becnel Jr., who represents more than 200
>owners of homes containing Chinese drywall, is advising his clients to
>avoid filing claims with their insurers or they could lose their
>houses.
>"I really believe everybody should have an insurance claim with this,"
>Becnel said. "But it's hard to tell somebody to go make a claim, then
>they lose their policy ... This is a nightmare for people."
>"I tell people flat out if you file, you may lose your insurance,"
>agreed Mississippi attorney Steve Mullins, who has about 100 clients
>with Chinese drywall in their homes.
>Chris Whitfield, a 29-year-old tire repairman, bought a house in
>Picayune, Miss., after his home in Louisiana's St. Bernard Parish was
>destroyed by Katrina. He soon discovered it was built with Chinese
>drywall, and moved out because it was making his family sick.
>His claim was denied by his insurer, Nationwide, which followed up
>with notice that he would be dropped because his policy didn't cover
>unoccupied dwellings.
>Nationwide spokeswoman Liz Christopher declined to comment on
>Whitfield's case and could not say how many drywall claims had been
>submitted or how many policies had been canceled or not renewed.
>Whitfield offered to move back into the house, but he said he was told
>he'd first have to replace the drywall.
>"I don't know what I'm going to do," he said.
>___
>Associated Press Writer Damian Grass in Miami contributed to this
>report.

> On Thu, 15 Oct 2009 23:02:06 -0700 (PDT), Too_Many_Tools

> >Anyone buying a house now or in the future should read this article.
> >Bear this in mind if you sheetrock your shop in the future.
> >TMT
> >Insurers dropping Chinese drywall policies
> >By BRIAN SKOLOFF, Associated Press Writer Brian Skoloff, Associated
> >Press Writer
> >Thu Oct 15, 2:10 pm ET
> >WEST PALM BEACH, Fla. =96 James and Maria Ivory's dreams of a relaxing
> >retirement on Florida's Gulf Coast were put on hold when they
> >discovered their new home had been built with Chinese drywall that
> >emits sulfuric fumes and corrodes pipes. It got worse when they asked
> >their insurer for help =97 and not only was their claim denied, but
> >they've been told their entire policy won't be renewed.
> >Thousands of homeowners nationwide who bought new houses constructed
> >from the defective building materials are finding their hopes dashed,
> >their lives in limbo. And experts warn that cases like the Ivorys', in
> >which insurers drop policies or send notices of non-renewal based on
> >the presence of Chinese drywall, will become rampant as insurance
> >companies process the hundreds of claims currently in the pipeline.
> >At least three insurers have already canceled or refused to renew
> >policies after homeowners sought their help replacing the bad
> >wallboard. Because mortgage companies require homeowners to insure
> >their properties, they are then at risk of foreclosure, yet no law
> >prevents the cancellations.
> >"This is like the small wave that's out on the horizon that's going to
> >continue to grow and grow until it becomes a tsunami," said Florida
> >attorney David Durkee, who represents hundreds of homeowners who are
> >suing builders, suppliers and manufacturers over the drywall.
> >During the height of the U.S. housing boom, with building materials in
> >short supply, American construction companies turned to Chinese-made
> >drywall because it was abundant and cheap. An Associated Press
> >analysis of shipping records found that more than 500 million pounds
> >of Chinese gypsum board was imported between 2004 and 2008 =97 enough to
> >have built tens of thousands of homes. They are heavily concentrated
> >in the Southeast, especially Florida and areas of Louisiana and
> >Mississippi hit hard by Hurricane Katrina.
> >The defective materials have been found by state and federal agencies
> >to emit "volatile sulfur compounds," and contain traces of strontium
> >sulfide, which can produce a rotten-egg odor, along with organic
> >compounds not found in American-made drywall. Homeowners complain the
> >fumes are corroding copper pipes, destroying TVs and air conditioners,
> >and blackening jewelry and silverware. Some believe the wallboard is
> >also making them ill.
> >The federal government is studying the problem and considering some
> >sort of relief for homeowners.
> >Meanwhile, the AP interviewed several homeowners who, like the Ivorys,
> >were unlucky enough to purchase properties built with Chinese drywall,
> >and are now being hit with a second and third wave of bad news: Their
> >insurers are declining to fill their claims, then canceling the policy
> >or issuing notices that policies won't be renewed until the problem is
> >fixed. The homeowners have little recourse since neither the Chinese
> >manufacturers nor the Chinese government are likely to respond to any
> >lawsuits or reimburse them for the defective drywall.
> >In each instance, the insurer learned of the drywall through a claim
> >filed by the homeowner seeking financial help with its removal.
> >The Ivorys have sued their builder, but it could take months for their
> >case and hundreds like it to work their way through the courts. In the
> >meantime, they have moved back to Colorado because their three-bedroom
> >ranch home two miles from the Gulf of Mexico is unlivable and soon
> >will be uninsured.
> >"It's been an emotional roller-coaster," said James Ivory, who is
> >still making mortgage payments on the house. "It was all in our heads,
> >nice weather down there, calm life, beaches. Now I don't know what to
> >do."
> >John Kuczwanski, a spokesman for the Ivorys' insurer, Citizens
> >Property Insurance Corp., said their claim was denied because the
> >drywall is considered a builder defect, which is not covered under the
> >policy. It also considers the drywall a pre-existing condition that
> >could lead to future damage, which is why the company won't renew the
> >policy unless the problem is fixed.
> >"If someone were to have bought a new car and there was a defective
> >part, would that person go to their auto insurance to get that fixed
> >or would they go back to the manufacturer?" Kuczwanski said. "We
> >provide insurance, not warranty service."
> >Citizens, a last-resort insurer backed by the state of Florida for
> >people who can't find affordable coverage elsewhere, has received 23
> >claims about Chinese drywall, and has so far denied five. Citizens
> >could not immediately say how many policies had been canceled or not
> >renewed because of the drywall.
> >Robert Hartwig, president of the Insurance Information Institute,
> >agreed that homeowners policies were never meant to cover "faulty,
> >inadequate or defective" workmanship, construction or materials.
> >Tom Zutell, spokesman for the Florida Office of Insurance Regulation,
> >said the cancellations are troubling, but legal. No law prevents
> >insurance companies from canceling policies because of Chinese
> >drywall.
> >"We are staying out of the fray at the moment," he said.
> >Even if a homeowner does not file a claim over the drywall and remains
> >covered, they could later be denied a claim for a fire or another
> >calamity if insurance investigators determine the home contained
> >undisclosed Chinese drywall.
> >"If you think that by not telling your insurance company about the
> >drywall that you're protected, you're sadly mistaken," Durkee said.
> >A newly married couple in Hallandale Beach, Fla., saved up for five
> >years to buy their first home only to later discover it had Chinese
> >drywall. They filed a claim with their insurer, Universal Insurance
> >Co. of North America, and were denied.
> >Universal then sent the couple a letter, stating their policy was
> >being dropped because "the dwelling was built with Chinese drywall."
> >The couple then signed on with Citizens, but didn't divulge the
> >drywall issue, and hasn't filed another claim. The 31-year-old man
> >requested anonymity because he's afraid of losing his insurance
> >policy, and thus his home.
> >"I honestly don't know what I'd do if that happened," he said. "All
> >this has basically taken us back five years. We saved money to buy
> >this home."
> >Universal did not respond to requests for comment.
> >Louisiana lawyer Daniel Becnel Jr., who represents more than 200
> >owners of homes containing Chinese drywall, is advising his clients to
> >avoid filing claims with their insurers or they could lose their
> >houses.
> >"I really believe everybody should have an insurance claim with this,"
> >Becnel said. "But it's hard to tell somebody to go make a claim, then
> >they lose their policy ... This is a nightmare for people."
> >"I tell people flat out if you file, you may lose your insurance,"
> >agreed Mississippi attorney Steve Mullins, who has about 100 clients
> >with Chinese drywall in their homes.
> >Chris Whitfield, a 29-year-old tire repairman, bought a house in
> >Picayune, Miss., after his home in Louisiana's St. Bernard Parish was
> >destroyed by Katrina. He soon discovered it was built with Chinese
> >drywall, and moved out because it was making his family sick.
> >His claim was denied by his insurer, Nationwide, which followed up
> >with notice that he would be dropped because his policy didn't cover
> >unoccupied dwellings.
> >Nationwide spokeswoman Liz Christopher declined to comment on
> >Whitfield's case and could not say how many drywall claims had been
> >submitted or how many policies had been canceled or not renewed.
> >Whitfield offered to move back into the house, but he said he was told
> >he'd first have to replace the drywall.
> >"I don't know what I'm going to do," he said.
> >___
> >Associated Press Writer Damian Grass in Miami contributed to this
> >report.

> I feel bad for the owners but I am not sure this is really a problem
> that is covered by your homeowner's insurance- Hide quoted text -
> - Show quoted text -

>I would agree...the problem seems to be the lack of retrieving damages
>from the manufacturers and importers of the bad sheetrock.

>It also means that any sheetrock you use from now on is suspect.

> In article <df571e48-c287-4d3f-8598-dcfee7fd2...@o10g2000yqa.googlegroups=

> >I would agree...the problem seems to be the lack of retrieving damages
> >from the manufacturers and importers of the bad sheetrock.

> Nonsense. The homeowners need to go after the *builders* who used low-qua=

> materials.