Chinese Drywall is causing problems. And insurance is being pulled on those homes.

Reblogger Sybil Campbell
Real Estate Agent with Century 21 John T. Ferreira and Son Inc

We have also had some problems with Chinese Drywall in the Williamsburg Virginia area as well as in neighboring Newport News.  

This is a very serious problem in Williamsburg Virginia also!  Check out this blog I posted in August about Chinese Drywall and this blog also.

 

Original content by Rick Hauser

In West Palm Beach Florida - a couple recently discovered that their relaxing retirement was 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.

Insurers drop policies or send notices of non-renewal based on the presence of the Chinese drywall.

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.

During the height of the U.S. housing boom, with building materials in short supply, American construction companies imported millions of pounds of Chinese-made drywall because it was abundant and cheap.

An Associated Press analysis of shipping records found that more than 500 million pounds of Chinese gypsum board was imported between 2004 and 2008 -- enough to have built tens of thousands of homes.  Shipments were heavily concentrated in the Southeast, especially Florida.

The defective materials have been found to emit "volatile sulfur compounds," and contain traces of strontium sulfide, which can produce a rotten-egg odor, along with organic compounds not found in American-made drywall.

Homeowners complain the fumes are corroding copper pipes, destroying TVs and air conditioners, and blackening jewelry and silverware. Some believe the wallboard is also making them ill.

The federal government is studying the problem and considering some sort of relief for homeowners.

Homeowners have little recourse since neither the Chinese manufacturers nor the Chinese government are likely to respond to any lawsuits or reimburse them for the defective drywall.

Insurers learn of the drywall through a claim filed by the homeowner seeking financial help with its removal.

Insurance companies consider the drywall a pre-existing condition that could lead to future damage, which is why the company won't renew the policy unless the problem is fixed.

Even if a homeowner does not file a claim over the drywall and remains covered, they could later be denied a claim for a fire or another calamity if insurance investigators determine the home contained undisclosed Chinese drywall.

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Rainmaker
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Joan Whitebook
Consumer Focused Real Estate Services
BHG The Masiello Group

Oh my -- another thing to worry about.  How does one know if there is chinese drywall in a home?

October 15, 2009 10:37 PM
Rainmaker
70,707
Todd Kevitch
BPO Realty - Boynton Beach Real Estate and more

We recently had two insurers notify homeowners that they are cancelling their policies due to chinese drywall.  The government really needs to step in at some point to make these companies the exception rather than the rule. 

October 15, 2009 11:34 PM
Rainmaker
259,651
Sybil Campbell
REALTOR ABR, SFR, SRES - Amelia Island
Century 21 John T. Ferreira and Son Inc

John,  i really feel sorry for the people who find themselves in home with this drywall.

Joan,  The odor and the destruction of electronics and jewelry would be the obvious clue in addition to the year that the house was built.

Todd, It is really a bad situation for everyone involved!

October 16, 2009 09:54 PM
Rainmaker
116,050
Sara Goodwin
Portland, Oregon Appraiser
Ashcroft & Associates

Hi Sybil - I wrote a quick blurb about toxic drywall and then found (of course) there were several other posts on the subject that had more information than my own including yours.  I hope you don't mind that I added your blog link to my post for reference...

October 29, 2009 12:02 PM
Rainmaker
259,651
Sybil Campbell
REALTOR ABR, SFR, SRES - Amelia Island
Century 21 John T. Ferreira and Son Inc

Sara,

I would appreciate it if you would edit your blog and remove the URL's to my blog.  You can re-blog any of my original blogs by clicking on the re-blog button at the top of the page.  You will actually get 25 points for the re-blog and it will count as a new blog for you, if you like getting points.

 

Sybil Campbell, REALTOR®, ABR, SRES 

Long and Foster REALTORS®  

(757) 897-5889

www.buywilliamsburghomes.com

www.urhomecompass.com

sybilcampbell@cox.net

 

WHATEVER THE DIRECTION SYBIL CAN HELP YOU FIND THE HOME OF YOUR DREAMS

 www.urhomecompass.com

 

October 29, 2009 02:31 PM
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