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Insurers dropping Chinese drywall policies
Associated Press ^ | Thursday, October 15, 2009 | BRIAN SKOLOFF

Posted on 10/16/2009 6:57:14 PM PDT by stevie_d_64

WEST PALM BEACH, Fla. – James and Maria Ivory's dreams of a relaxing retirement on Florida's Gulf Coast were put on hold when they discovered their new home had been built with Chinese drywall that emits sulfuric fumes and corrodes pipes. It got worse when they asked their insurer for help — and not only was their claim denied, but they've been told their entire policy won't be renewed.

Thousands of homeowners nationwide who bought new houses constructed from the defective building materials are finding their hopes dashed, their lives in limbo. And experts warn that cases like the Ivorys', in which insurers drop policies or send notices of non-renewal based on the presence of the Chinese drywall, will become rampant as insurance companies process the hundreds of claims currently in the pipeline.

At least three insurers have already canceled or refused to renew policies after homeowners sought their help replacing the bad wallboard. Because mortgage companies require homeowners to insure their properties, they are then at risk of foreclosure, yet no law prevents the cancellations.

(Excerpt) Read more at news.yahoo.com ...


TOPICS: Extended News; Front Page News; Government; News/Current Events
KEYWORDS: cheap; china; chinese; dangerous; drywall; imports; madeinchina
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To: SeminoleSoldier

What part of corroding pipes/wires and emitting toxic fumes do you consider frivolous?


21 posted on 10/16/2009 7:26:27 PM PDT by allmost
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To: Zhang Fei

Good stuff!!!


22 posted on 10/16/2009 7:26:56 PM PDT by stevie_d_64
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To: BGHater

“Chinese drywall. What an epic failure. “

Well, yeah, but their small aircraft industry is just gonna be super!


23 posted on 10/16/2009 7:32:45 PM PDT by EEDUDE
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To: SeminoleSoldier

I am not suggesting a frivolous lawsuit - I am saying the builder is responsible for the quality of products he uses in a build - is he not responsible if a window leaks, or the foundation is cracked? Why would he not be liable for the inferior products used? He chose to buy the cheap chinese product, right? Why does the homeowner have to carry the burden for his shoddy work?


24 posted on 10/16/2009 7:33:08 PM PDT by WhyisaTexasgirlinPA (Blankety blankety blank)
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To: stevie_d_64
The bottom line? The Chinese make different grades of products. The most inferior grades are reserved for the home market. Why? Because locals can't afford the export grade product, so it's a question of buying inferior product or no product at all. And yet some American builders chose to buy the dregs to save perhaps a buck per sheet.

A sheet of drywall weighs 70lbs. Port to port shipping across the Pacific costs about $0.05 a pound. This means that each sheet of drywall costs about $3.50 to ship to the US. Consider that domestic drywall costs about $6 per sheet. How much money could they have saved? These builders were nuts to cut corners on something so fundamental.

25 posted on 10/16/2009 7:35:59 PM PDT by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always)
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To: stevie_d_64

And of course, when they try to sue the builder, they’re likely to find the builder in bankruptcy.


26 posted on 10/16/2009 7:37:38 PM PDT by GovernmentShrinker
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To: HiTech RedNeck
Tin foil hat time or maybe should I say copper foil? If the sulphurous stuff was “domestic” drywall, is this what the Chicoms get installed in the homes of their enemies?

Chinese residential construction is almost all bricks and mortar, because Chinese labor costs are low, whereas materials costs are basically the same worldwide. In fact, the labor value-added is what accounts for the difference in materials prices. US labor costs are probably 10x Chinese labor costs, whereas US materials costs are maybe 1.5x Chinese materials costs.

27 posted on 10/16/2009 7:49:54 PM PDT by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always)
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To: GovernmentShrinker
These builders were nuts to cut corners on something so fundamental.

Not taking sides here, but I read in a few places that there was a severe shortage of drywall (in the south-east U.S.) due to lots of construction going on. Builders had to buy the imported stuff in order to build, or go out of business. Lose-lose situation all around.

28 posted on 10/16/2009 7:50:47 PM PDT by roadcat
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To: stevie_d_64

29 posted on 10/16/2009 7:51:31 PM PDT by traumer
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To: Zhang Fei
These builders were nuts to cut corners on something so fundamental.

Not taking sides here, but I read in a few places that there was a severe shortage of drywall (in the south-east U.S.) due to lots of construction going on. Builders had to buy the imported stuff in order to build, or go out of business. Lose-lose situation all around. (Apologies to post#26, meant for #25.)

30 posted on 10/16/2009 7:54:28 PM PDT by roadcat
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To: WhyisaTexasgirlinPA
I am not suggesting a frivolous lawsuit - I am saying the builder is responsible for the quality of products he uses in a build - is he not responsible if a window leaks, or the foundation is cracked? Why would he not be liable for the inferior products used? He chose to buy the cheap chinese product, right? Why does the homeowner have to carry the burden for his shoddy work?

The liability rests ultimately with the producer, importer or distributor of the defective product. The builder has a defense if the product in question was legal for use and certified under existing building codes at the time the home was built.

31 posted on 10/16/2009 7:57:30 PM PDT by JrsyJack (There's a little Jim Thompson in all of us)
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To: HiTech RedNeck
I suspect low grade Chinese drywall might be used in private Chinese commercial establishments, including both service and manufacturing sectors. Most private Chinese businesses are intensely price-competitive and therefore have a here-today-gone-tomorrow flavor that does not encourage the building of monuments, meaning a lot of structures are built with the cheapest possible materials. State-owned companies probably use the better product, since they are (1) less profit-driven and (2) the beneficiaries of both government-granted monopolies and routine interventions to prop them up if their finances are looking sickly.

Most Chinese businesses don't have HVAC systems on 24 hours a day, so bad drywall may not be such a problem. I suspect the remedy for anyone with bad drywall may be to turn off the HVAC system and open the windows at least 8 hours a day.

32 posted on 10/16/2009 8:03:10 PM PDT by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always)
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To: Lets Roll NOW

I like that idea.


33 posted on 10/16/2009 8:08:18 PM PDT by SeminoleSoldier
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To: HiTech RedNeck
adding insult to injury... they know this wallboard is bad juju and will damage many other things!

I don't really blame the insurance companies. Imagine me going to my auto insurance company and telling them to compensate me for the fact that my Ford Pinto blows up whenever I parallel park it New York-style (i.e. stop reversing my car when I see the car behind me move).

34 posted on 10/16/2009 8:13:43 PM PDT by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always)
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To: WhyisaTexasgirlinPA

If it was within code how was the builder supposed to know what problems would occur years down the road? The issue isn’t workmanship or competency on the builder’s part, but problematic materials.

If he skimped on the concrete mix and watered it down by mistake or cutting corners, then yes he’d be liable. If the concrete he bought was bad from the manufacturer when he had no reason to think it would be, why would he be liable?


35 posted on 10/16/2009 8:15:16 PM PDT by SeminoleSoldier
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To: SeminoleSoldier

On another note, asbestos containing drywall has been a problem in south Texas, coming in from Mexico. One south Texas University was found to be installing asbestos drywall in new buildings. Local contractors in Corpus Christi were buying the stuff in Laredo for a dollar a sheet. The Minister of Mines in Mexico (believe that is the title) recently denied that asbestos is mined in Mexico, according to a friend of mine who told me of his conversation with the guy.


36 posted on 10/16/2009 8:21:48 PM PDT by TStro
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To: Zhang Fei
The problem is that US distributors purchased and then imported the domestic quality Chinese drywall rather than much better quality drywall made for the export market. If US distributors would have all purchased the good export stuff there would not be any problems at all.

Sounds like some hasty butt covering to me.

if that drywall was only made for 'domestic' use - how did the US buyers purchase it - they forced them to sell it to them? If it wasn't supposed to be sold out of country - how did it get exported?

Not to mention - nice of them to build hazardous stuff for their own people.

I wonder if the bad stuff wasn't MEANT for export - and they're scrambling to cover up.

37 posted on 10/16/2009 8:30:34 PM PDT by maine-iac7 ("He has the right to criticize who has the heart to help" LINCOLN)
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To: SeminoleSoldier
This is an interesting article stating a construction company in Florida told the home owners they only used American products until the homeowner went into his attic and saw "made in china" on his drywall. They are now offering to do "something" but want the home owner to waive any legal action.

Another company, Lennar, has replaced their chinese drywall in another location in Florida. So it appears the builders are stepping up to correct the defects. Now, as to liability, maybe they aren't liable - but the homeowner contracted with them to build a liveable home and the builder ended up using a product that was not safe.

38 posted on 10/16/2009 8:43:57 PM PDT by WhyisaTexasgirlinPA (Blankety blankety blank)
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To: roadcat

That may have been true, but I know several people who work for USGypsum and they were working 6 days a week for over a year and are now cutting back on all shifts to as few as 3 days per week for some.


39 posted on 10/16/2009 8:45:52 PM PDT by WhyisaTexasgirlinPA (Blankety blankety blank)
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To: TigersEye

I tell FF about this & he says I am nuts. I am printing it out this time just to prove I am right.


40 posted on 10/16/2009 8:49:40 PM PDT by pandoraou812 (Don't play leapfrog with a unicorn.....................^........................)
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