Fla. Citizens: Not Dropping Policies Just Because Of Drywall

NU Online News Service, Jan. 24, 8:59 a.m. EST

Florida’s last-resort insurance company, the largest writer of property insurance in the state, said it is not canceling homeowners’ insurance coverage solely because its policyholders' residences may have defective Chinese drywall.

In an emailed statement, Citizens Property Insurance Corp. said that it is sticking to a policy adopted in 2009 when the drywall crisis first developed.  

“As we said then, the mere fact that a covered property may have Chinese drywall does not mean that coverage will be canceled or [non-renewed],” said Citizens spokeswoman Christine Ashburn. “Each risk will be evaluated individually and a determination made if the property continues to be insurable.”

Citizens was called on to respond to statements made to news sources in Florida by attorney David Durkee. Mr. Durkee represents hundreds of people with homes that have the defective building material, according to his website. He alleged Citizens was dropping policyholders with Chinese drywall, which is said to emit foul-smelling odors and corrode cooper pipes and wiring.

Florida is one of many states affected by Chinese drywall, which was imported into the U.S. when wallboard was in short supply during hurricane reconstructions and the housing boom.

Late last year a federal judge in New Orleans ruled policy exclusions in homeowners policies cleared insurance companies from having to pay losses due to Chinese drywall.