I blogged in August on the Chinese Drywall problems and the response of the insurance industry. According to a number of articles circulating today, one insurance company in Florida -- not surprisingly a public one backed by the state -- has said it will renew at least one couple's policy on its home. It apparently is partially backing off of its earlier argument that Chinese Drywall in a home is a 'pre-existing condition' (remind you of the health care debate) and/or that the damages caused by it is excluded because of a pollution exclusion. See, for example, the article in today's Insurance Journal.
This may be a small victory for policyholders in the larger fight -- particularly because the insurer said that it won't pay to fix the problem but at least will renew, a requirement that most banks impose upon their borrowers to avoid default on their mortgages. And a lobbying group for the insurance industry took the position that policies were never meant to cover defective materials. His overzealous statement seems to overlook that homeowner's policies have always been purchased to cover property damage and that is what the Chinese Drywall is causing.
While I have not read them all, the Associated Press has run a series of articles on drywall claims and the tactics of insurance companies. I invite all of you who are interested to google the AP and chinese drywall to pursue what it had to say on this subject.
This may be a small victory for policyholders in the larger fight -- particularly because the insurer said that it won't pay to fix the problem but at least will renew, a requirement that most banks impose upon their borrowers to avoid default on their mortgages. And a lobbying group for the insurance industry took the position that policies were never meant to cover defective materials. His overzealous statement seems to overlook that homeowner's policies have always been purchased to cover property damage and that is what the Chinese Drywall is causing.
While I have not read them all, the Associated Press has run a series of articles on drywall claims and the tactics of insurance companies. I invite all of you who are interested to google the AP and chinese drywall to pursue what it had to say on this subject.
