At least two Florida insurance companies have begun dropping the policies of homeowners with Chinese drywall.
Citizens Property Insurance, the non-profit, state-created “insurer of last resort” for Florida homeowners has thus far notified some homeowners who have filed Chinese drywall claims that their policies will not be renewed if they fail to remediate the tainted drywall within 6 months of the date of the notice. Universal North America has also reportedly cancelled a Florida homeowner policy after receiving a Chinese drywall claim.
The insurers are also refusing to pay for the remediation, citing policy exclusions for builder defects and pollution. It is estimated that remediation of an average home will cost in the ballpark of $80,000 to $100,000.
Chinese drywall is under investigation by authorities for emitting gases that corrode household metal components and have reportedly caused health problems in the occupants of affected homes.
For the full story, go to Wall Street Journal.