Chinese Drywall Victims Get Help with Homeowners Insurance ...
In October, we reported that numerous homeowners in a few Southern states had been or were in threat of being dropped from their homeowners insurance policies because they'd reported to their insurance companies that the Chinese drywall in their homes needed repairs ( see store here ). However, the insurance commissioner in Louisiana is now stepping up to help homeowners who have no other way to pay for their damage.
The Infamous Drywall
Several months ago, homeowners began complaining of foul odors and corroded appliances that were even making some inhabitants sick and unable to live in their homes. After discovering that the drywall may have been the culprit, they filed claims with their insurance companies to get the drywall replaced.
However, the response to the claims were not offering a date for an inspector to come to the home; instead, homeowners received notification that they must repair the drywall within a specific period of time or be dropped from their policies.
The Insurance Commissioner Stepped In
While the Chinese drywall appears to have been included in over 100,000 homes that were built between 2006 and 2007 in Florida and Louisiana, so far it is the Louisiana Insurance Commissioner that has stepped up to help his state's homeowners. Here are a few of his ideas:
Three-year clause: In the state of Louisiana, insurance companies are prohibited from dropping policyholders if they have been customers for at least three years. New renovation policy initiated: Also, the commissioner noted that Citizens Insurance will offer a "Builders Risk Renovation" policy geared towards homeowners with Chinese drywall. While the insurance won't essentially fix the drywall, it will allow those who have been dropped from their insurers an opportunity to uphold their agreement to maintain homeowners insurance...