Insurance policies do not cover losses due to the destructive properties of Chinese drywall because of two policy exclusions, a federal court has ruled.
Therefore, the motions of 10 insurers to dismiss consolidated litigation concerning the drywall were granted by U.S. District Court Judge Eldon Fallon in New Orleans.
Analyzing a handful of policy exclusions, the judge ruled that homeowners could not seek coverage due to the faulty materials and corrosion exclusions within the policies.
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