Insurers drop drywall victims

Some Florida homeowners who file property damage claims related to defective drywall are finding themselves without an insurance policy, according to a report in the Wall Street Journal.

Citizens Property Insurance, a state-created, non-profit corporation that is the largest insurer in Florida, confirmed that it has notified some homeowners that their policies won’t be renewed unless the damage linked to the Chinese-imported drywall isn’t repaired within six months.

Aspokesman for Citizens told the newspaper that the corrosion blamed on the drywall could lead to further damage to the homes and future claims against the insurance company. The homeowners must pay for the repairs themselves because builder defects are not covered.

Asecond insurance company, Universal North America, sent a notice of cancellation to at least one Florida homeowner who filed a drywall-related claim, according to the Wall Street Journal. The cancellation letter cited “adverse long-term effects on the plumbing and other dwelling components” of Chinese drywall.

Hundreds of consumers have reported adverse health effects from the imported drywall, which was used to build homes throughout the United States in 2006 and 2007. Several home builders, including Lennar, have begun identifying and repairing these homes. At least six class-action lawsuits have been filed on behalf of more than 2,000 homeowners, naming the Chinese-based manufacturers, as well as importers, developers and builders, contractors and manufacturers.