Special offer

Who's to Blame... Who's to Pay?

By
Real Estate Agent with Keller Williams South Tampa SL3178936

Homeowner's who live in homes plagued by Chinese drywall are already dealing with issues such as air conditioning units that stopped working, rotten egg smell permeating their belongings, along with more serious health problems.  The problem for some may get even worse. 

One insurance company in Florida is denying claims for the replacement of Chinese drywall, because policies don't cover contamination or building material defects.  If the homeowner knows there is drywall damage, the policy renewal could even be denied if repairs aren't made.

Most coverage guidelines were written well before Chinese drywall was heard of.  Denying claims and canceling renewals because of it seems absurd....  How many insurance companies expected the eight hurricanes that hit Florida during 2004-2005?  Yet claims were paid to repair and rebuild homes.  Although Chinese drywall isn't a natural disaster, homeowner's are just as shaken up by the damage to their homes and worse their health.

So what do you think?  Should the insurance companies pay the claims, then go after the builders/suppliers?  Should they deny the claims, deny renewals and make things worse on homeowners?

Alix Pinzon
Open Mortgage, LLC NMLS # 2975 - Downey, CA
(562)743-6086

Surely the Chinese manufacturers, or the Chinese government isn't going to cover it.  It also doesn't surprise me that the insurance companies aren't going to cover it, since they're bigger con artists than the Chinese.  And since builder come and go like the wind, it looks like the owner will be stuck?

Oct 09, 2009 03:55 AM
Edward & Celia Maddox
The Celtic Connection Realty - Queen Creek, AZ
EXPERIENCE & INTEGRITY - WE TAKE THE HIGH ROAD

Good article. We get a lot out of Active Rain articles. Thanks.

Oct 09, 2009 03:55 AM
Mick Michaud
Distinctly Texas Lifestyle Properties, LLC Office:682/498-3107 - Granbury, TX
Your Texas Lifestyle is Here!

Being a builder and a broker, this is an interesting dilemma.

Building materials are supposed to be rated/certified by their respective trade associations and comply with state and federal product guidelines.

In production homes, everyone uses the cheapest materials they can because as consumers, we want to buy at the best price we can.

If the product was certified, complied with all laws/codes and was installed without knowlege of the defect, then the builder and supplier are not responsible.  Normally, the defect would go back to the manufacturer.  In this case, being China, good luck on that one.  Likewise, insurance companies don't normally cover defective materials or workmanship.  Insurance companies that issue the home-owners insurance are not liable.   There may be some product liability insurance to the importer, so there is a possilbility to recover damages through them.

 

The homeowner could try sueing the manufacturers, but it would be cheaper to gut the house and have it redone.

There is no good solution to the issue.

Oct 09, 2009 04:05 AM