Louisiana House Passes S.B. 565, and Homeowners May Soon Have Needed Protections

BATON ROUGE, La. (June 14, 2010) Baron & Budd, P.C. attorney Burton LeBlanc applauded last week’s passage of S.B. 565 by the Louisiana House of Representatives. The bill, sponsored by State Senator Julie Quinn, would provide certain protections for Louisiana homeowners dealing with toxic Chinese drywall. In April, LeBlanc testified in support of the bill before the Senate Insurance Committee, shortly before the bill was unanimously passed by the senate. The senate will be asked to concur to some house amendments to the bill, after which the bill will go before the Governor Bobby Jindal.

The bill would forbid insurance companies from canceling or refusing to renew a homeowner’s insurance policy based on homeowner making a claim involving Chinese drywall. In addition, it would require insurance companies to reinstate policies that have been canceled or non-renewed because of Chinese drywall.

LeBlanc notes, “The protections offered by this bill are critical for Louisiana homeowners because, if a policy is cancelled or non-renewed, the homeowner will not be able to get alternative insurance coverage—which would put the mortgage in default and the homeowner at risk of losing their home.”

So far, insurers have consistently refused to cover Chinese drywall claims. Some homeowners are so afraid of losing their insurance coverage that they won’t make a claim, despite its devastating effects.

“Senator Quinn has been a champion for these homeowners when their insurance companies and their homebuilders have turned away,” said LeBlanc. “I applaud her efforts and have been honored to stand with her in support of this bill.”

About Baron & Budd

Dallas-based Baron & Budd, P.C., with offices in Baton Rouge, Austin and Beverly Hills, is a nationally recognized law firm with more than three decades of experience representing people and communities harmed by corporate negligence. With over 60 attorneys and approximately 200 staff, Baron & Budd’s size and resources have enabled the firm to take on some of the largest and most complex cases. The cornerstone of the firm is toxic tort litigation, representing individuals, municipalities and water providers seeking redress from manufacturers of hazardous products and corporate polluters. The firm handles cases for injuries caused by exposure to asbestos, benzene and other toxic substances. Baron & Budd’s work includes representation of securities investors defrauded by corporate wrongdoing and consumers and businesses in class actions and insurance litigation. Visit baronandbudd.com.