Biloxi / Gulfport Personal Injury Lawyer - Chinese drywall

Homeowners Nightmare. Insurance doesn't cover Chinese drywall damage.

Gerry McGill — Fri, 23 Oct 2009 11:37:36 GMT

Just when you thought you had seen it all with insurance companies, ABC News has released this new report on homeowner's insurance:

As a New Orleans federal court holds a hearing today on lawsuits alleging that defective Chinese-made drywall is destroying people's homes and their health, outside the courtroom owners of more than 100,000 houses built with that drywall are learning that some insurance companies are canceling their policies.

Apparently:

Now that insurance companies know about the tainted drywall, some, such as Universal Insurance and Citizens Property Insurance, have chosen to cancel policies to avoid further risk from things like corroding pipes that could burst.

Builders started using Chinese-made drywall after the combined building boom, the devastation to Florida by Hurricanes Charley, Francis, Ivan, and Jeanne in 2004, and then the Hurricanes Katrina and Wilma in 2005 caused a shortage in domestic building materials. At first, the building materials from China didn't seem to be any different than the normally-used materials, but after a while, the homeowners who moved into the homes built with Chinese-made drywall began to notice a change in their health and living conditions. Take, for instance, the story of real-estate agent Felix Martinez:

Felix Martinez thought he'd found his dream house when he bought the 3,500-square-foot beauty in Homestead, Fla., two years ago.

Then, he says, his large-screen TV mysteriously failed. Next, the air conditioner went. His bath towels smelled like rotten eggs. Visitors noted an odor in the house. Martinez says he's suffered new sinus problems and sleep apnea. His wife and son sneeze a lot.

Other families have reported similar timelines in homes that were built with Chinese materials: damage to their property, a sulfurous odor, and negative health effects, usually dealing with the respiratory system. The Consumer Product Safety Commission is currently investigating Chinese-made drywall, to see if it is emitting sulfur gasses, which can corrode copper coils and electronics in a home. A current lawsuit against the drywall manufacturer Knauf Plasterboard Tianjin says that such sulfurous gasses can have negative health effects on people, but Knauf disagrees, saying that tests have been done on the gasses and they do not affect health in any way.

Either way, it is apparent that living conditions in homes with Chinese-made drywall are becoming unbearable, so the homeowners have two options: either move, or replace the drywall. If the family moves, "they have to disclose the drywall problem and that may make their dream home virtually worthless". These homes were built in 2005 or more recently, so the majority of the people who have bought these homes have not paid off their mortgages on them, which may make selling them for less then they paid for them a financial catastrophe.

Unfortunately, if the family chooses to replace the drywall, it could cost them upwards of $100,000, and many home-owners insurance companies, such as Citizens Insurance Company, are dropping their policies with these homeowners as soon as the families make a claim to help pay for the replacement drywall.

While the law doesn't prevent insurance companies from dropping policies in this manner, this is another example of ordinary people being left out to dry by the insurance companies that they pay high premiums to every month. If we can't rely on our insurance companies to help us financially when we fall on hard times, then why do we pay them so much money? This is a sad situation, and hopefully we will learn from this, and start to hold our insurance companies and homebuilders accountable for their actions.

Originally posted at InjuryBoard by Gerry McGill

Homeowner's Chinese Drywall Claim Can Lead to Mortgage Foreclosure

Gerry McGill — Mon, 19 Oct 2009 12:25:17 GMT

The nightmare begins when you discover that the dream home which you purchased in 2005, at the peak of the housing boom, is contaminated with Chinese Drywall. It continues when you learn that your builder went bankrupt in 2008. Then you file a claim with your Homeowners Insurance Company. Despite having faithfully paid all your premiums for the last four years, your claim is denied because, to your surprise, the policy includes exclusions for construction defects or pollution defects.

You think things couldn't get worse but you are wrong. Your Homeowners Insurance Company next sends you written notice that they will not re-new your policy because your home is contaminated with Chinese Drywall. They would be willing to re-new your policy "once the problem has been remediated to their satisfation". With no solvent builder and no insurance coverage you lack the $100,000.00 or so that it will take to remove, replace and re-paint all the existing drywall, replace wooden studs and framing, replace all insulation and other porous matter, re-wire the entire electrical system ,since the copper wires are corroded and could be a fire hazard, and replace any fixtures containing copper wires, such as the A/C air handler and refrigerator.

So what happens next? You move out of your house but you have to keep paying the mortgage, taxes and insurance each month. Then when your Homeowner's Policy expires your Insurance Company send a Notice of Cancellation of Insurance to your Mortgage Holder. Since all Mortgage Holders require Homeowners' Insurance to cover them in the case of a loss, you are now in default on your mortgage. You will get some grace period to bring your mortgage current by obtaining the required insurance, but where will you get it from? Nowhere, unless the government step in.

I wish this scenario was just a nightmare and would be gone when you wake up, but for thousands of families I'm afraid this is going to become a reality. I wish even more that I knew the solution to the problem but I don't. The Chinese companies that manufactured this toxic drywall will probably just ignore the problem and continue to find more products to ship to America. I do not favor government to solve all our problems, but I do hope our leaders can show compassion and a willingness to help so many unsuspecting and innocent victims.

Originally posted at InjuryBoard by Gerry McGill

EPA finds suspect materials in Chinese drywall

Gerry McGill — Thu, 21 May 2009 11:15:56 GMT

In a report released Tuesday the Environmental Protection Agency, EPA, said that limited testing in two Florida homes revealed sulfur and two organic compounds associated with acrylic paints in Chinese made drywall. Those chemicals were not found in four samples of American made drywall.

Shipping records reviewed by The Associated Press indicated that potentially tainted Chinese building materials exceeded 500 million pounds during a four year period beginning in 2004. The drywall may have been used in more than 100,000 houses including houses rebuilt after Hurricane Katrina in 2005.

In addition to emitting a rotten-egg smell and corroding wires, applicances, door handles and even jewelry, the drywall has caused complaints of asthma and respiratory problems. U.S. Senator Bill Nelson of Florida said he experienced these problems when he visited a home in Florida built with the drywall. These problems appear to be particularly prevalent with children.

Senators Nelson and Mary Landrieu of Louisiana have introduced a measure to provide $2 million, mostly to the EPA, for additional testing on Chinese drywall. A Senate panel will conduct a hearing on the issue this Thursday.

Originally posted at InjuryBoard by Gerry McGill

How To Tell If You Have Toxic Drywall In Your House

Gerry McGill — Wed, 25 Mar 2009 10:14:19 GMT

Several people have contacted me asking how to tell if they have toxic Chinese drywall in their house or business. Generally, but not always, there is the "rotten egg" odor caused by Sulfur gasses. Also if there is some way you can view the back, or unfinished, side of the drywall see if it is marked as being made in China. Further if it is stamped "KNAUF" it is imported from China. Check your evaporator coils and copper wires in your indoor A/C units. If they are black you have the toxic drywall. Finally, remove the covers from some electrical outlets to see if the copper wires are black. Use care as the wires are live.

Originally posted at InjuryBoard by Gerry McGill

Toxic Drywall From China Causing Health Concerns In Homes

Gerry McGill — Fri, 13 Mar 2009 11:24:36 GMT

Several news sources have recently reported that drywall imported from China and installed in new and renovated homes in 2004-2005 has been creating noxious sulfur (rotten-egg) odors and potential health problems. In addition, the fumes given off are causing a problem with copper wiring and the coils in air conditioning units.

Doug Hoffman, executive director of the National Organization of Remediators and Mold Inspectors said he has been getting a lot of reports about the Chinese drywall recently from his members. Most of the complaints so far are in the U.S. Southeast. He said: "What they're finding is that the drywall being shipped over from China is emitting much higher levels of sulfur, methane, and other volatile organic compounds." At highest risk for health problems and children and the elderly. People with asthma and chemical sensitivities are at even higher risk.

The Environmental Protection Agency (EPA) confirms there is a problem, but says the breadth and severity of the problem are unknown. However, anyone living along the Gulf Coast knows only too well the extensive damage caused by major hurricanes in 2004 and 2005 and the great amount of rebuilding necessary which is still going on today.

Originally posted at InjuryBoard by Gerry McGill