U.S. Rep. Charlie Melancon (D-La.) recently introduced the Drywall Victims Insurance Protection Act to prevent insurers from canceling or refusing to renew homeowners’ insurance policies due to Chinese drywall concerns.
The legislation also prohibits insurers from changing or altering rates or coverage levels in relation to Chinese drywall problems.
Additionally, policyholders’ right to sue insurers over coverage drops would be protected. With more than 1,800 complaints related to Chinese drywall and property damage estimated at up to $3 billion, the legislation will ensure consumers are protected.
However, some small insurers have filed court cases stating that Chinese drywall damage is excluded from their policies.
Source: Business Insurance (11/18/09) Casale, Jeff
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