What thousands of homeowners in South Florida and nationwide have believed about Chinese drywall was validated Monday when the Consumer Product Safety Commission said there is a link between the imported material and problems with corrosion in homes that have it. But the agency also said they don’t believe the problems are as widespread as early estimates predicted.
The conclusion followed testing at 51 homes in Florida, Alabama, Louisiana, Mississippi and Virginia that found “a strong association between the problem drywall, the hydrogen sulfide levels in homes with that drywall and corrosion in those homes.”
Homeowners have been complaining for about a year to federal and state government agencies that their homes smell of sulfur or rotten eggs, the copper in their air-conditioning units and electrical wires in their homes are corroding and that other metals are turning black. They have also reported problems breathing, headaches and nosebleeds.
But until this week, no agency had officially linked corrosion problems with drywall. The safety commission is still investigating the link between wallboard and health concerns. Monday’s report said chemicals found in the homes tested were at levels lower than what might be expected to cause irritation, but the combination of those compounds with other substances could lead to the symptoms families are experiencing.
The agency cautioned that not all Chinese drywall is a source of problems.
“Not all drywall is alike,” said Jack McCarthy, president of Environmental Health & Engineering, which conducted the testing for CPSC. “Not all Chinese drywall is alike. It depends on what it’s made of -- not the country it came from.”
CPSC spokesman Scott Wolfson said the agency is “not limited in the scope of our investigation to just Chinese drywall.”
To date, the CPSC has received 2,091 complaints reports from residents in 32 states, the District of Columbia and Puerto Rico who believe their health symptoms or the corrosion of certain metal components are related to Chinese drywall. The majority of those -- more than 1,400 -- are from Florida residents.
While the problem is widespread, Wolfson said previous estimates that as many as 100,000 homes nationwide may be affected are likely incorrect. Complaints reported to state and federal agencies don’t foreshadow that large of a number.
The agency has spent about $3.5 million on its investigation, which it said is the largest in its history. The next phase of the agency’s work is on finding ways to identify problem drywall and come up with ways to treat homes.
Sen. Bill Nelson, D-Fla., was unimpressed with the consumer protection agency’s efforts.
“I’m still disappointed the government is taking too long to establish whether there’s a link between drywall, corrosion and health problems,” he said.
Many homeowners who are either living in their smelly homes or have moved out -- left to juggle mortgage payments and rent -- are still waiting for financial help. Some builders, including Miami-based Lennar and Sunrise-based GL Homes, have offered to repair affected homes. Many homeowners are pursuing lawsuits against foreign manufacturers that could take years to resolve.
Only one company, Knauf Plasterboard Tianjian, has agreed to be served with a federal class-action lawsuit and not force plaintiffs to go through international legal channels.
Warren Friedman of the U.S. Department of Housing and Urban Development said it is too early to discuss specifics of any financial assistance homeowners could get from the federal government. The CPSC sent the IRS a letter Monday informing them of their findings. The IRS could decide to allow homeowners to declare a casualty loss on returns.
Some states, including Louisiana, are using federal Community Development Block Grant money to help homeowners.
Copyright © 2009, The Miami Herald, Nirvi Shah. Miami Herald staff writer Lesley Clark contributed to this report. All rights reserved.
Wednesday, November 25, 2009
Tuesday, November 24, 2009
Citizens gets OK to raise rates
Homeowners living in high risk areas and getting their insurance from state-run Citizens Property Insurance will see their rates increase 5.2 percent beginning in January, state regulators ruled Friday.
Ten days after getting public input on the request, the Office of Insurance Regulation approved rate hike increases for Citizens high risk accounts, a pool of more than 300,000 policies for homeowners, condominium owners and commercial property owners.
The rate filings begin what company officials and lawmakers envision as a “glide path” toward higher rates for Citizens, the state’s property insurer of last resort. Those rates have been capped the last couple years because of increases after two heavy hurricane seasons that lawmakers thought were too difficult for home owners. Now, policymakers are trying to get rates back to where the actuaries say they should be.
Along with homeowners’ rates, Insurance Commissioner Kevin McCarty approved premium increases for commercial residential policies of 9.4 percent, commercial non-residential, 9.3 percent and mobile homes, 11 percent.
While lawmakers this year approved increases for Citizens, they limited annual adjustments at 10 percent increases for most policyholders. Citizens is Florida's largest property insurer with more than 1 million policyholders.
The 10 percent cap, however, does not include a provision to accelerate cash build up in the hurricane insurance pools. That’s why the mobile home rate increase will exceed 10 percent on average.
Friday’s approved rates were lower than what had previously been requested by Citizens.
Posted several weeks ago, the original proposed rate hikes would have increased homeowners’ insurance rates by 7.5 percent. Other increases included 9.6 percent for commercial residential, 9.9 percent for commercial non-residential property, and 11.8 percent for mobile home owners in the state-run pool.
McCarty also said the agency would look into claims by Monroe County residents that their rates are too high. During public testimony, a cadre of Monroe County homeowners said the Florida Keys represent a unique landscape and operate under a stricter building code. The combination renders inappropriate the model used by the state to set insurance rates for policyholders of Citizens Property Insurance Corp.
Citizens, the only insurer that provides wind insurance for the 100-mile strip from Key Largo to Key West, is charging too much for coverage residents don’t need, they say.
Source: News Service of Florida
Ten days after getting public input on the request, the Office of Insurance Regulation approved rate hike increases for Citizens high risk accounts, a pool of more than 300,000 policies for homeowners, condominium owners and commercial property owners.
The rate filings begin what company officials and lawmakers envision as a “glide path” toward higher rates for Citizens, the state’s property insurer of last resort. Those rates have been capped the last couple years because of increases after two heavy hurricane seasons that lawmakers thought were too difficult for home owners. Now, policymakers are trying to get rates back to where the actuaries say they should be.
Along with homeowners’ rates, Insurance Commissioner Kevin McCarty approved premium increases for commercial residential policies of 9.4 percent, commercial non-residential, 9.3 percent and mobile homes, 11 percent.
While lawmakers this year approved increases for Citizens, they limited annual adjustments at 10 percent increases for most policyholders. Citizens is Florida's largest property insurer with more than 1 million policyholders.
The 10 percent cap, however, does not include a provision to accelerate cash build up in the hurricane insurance pools. That’s why the mobile home rate increase will exceed 10 percent on average.
Friday’s approved rates were lower than what had previously been requested by Citizens.
Posted several weeks ago, the original proposed rate hikes would have increased homeowners’ insurance rates by 7.5 percent. Other increases included 9.6 percent for commercial residential, 9.9 percent for commercial non-residential property, and 11.8 percent for mobile home owners in the state-run pool.
McCarty also said the agency would look into claims by Monroe County residents that their rates are too high. During public testimony, a cadre of Monroe County homeowners said the Florida Keys represent a unique landscape and operate under a stricter building code. The combination renders inappropriate the model used by the state to set insurance rates for policyholders of Citizens Property Insurance Corp.
Citizens, the only insurer that provides wind insurance for the 100-mile strip from Key Largo to Key West, is charging too much for coverage residents don’t need, they say.
Source: News Service of Florida
Bill would protect homeowners with Chinese drywall
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
© Copyright 2009 INFORMATION, INC. Bethesda, MD
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
© Copyright 2009 INFORMATION, INC. Bethesda, MD
Wednesday, November 11, 2009
Florida's existing home, condo sales up in 3Q 2009
Sales of existing single-family homes in Florida rose 33 percent in third quarter 2009 compared to the same period a year earlier, according to the latest housing statistics from Florida Realtors®. A total of 44,345 existing homes sold statewide in 3Q 2009; during the same period the year before, a total of 33,311 existing homes sold. It marks the fifth consecutive quarter that Florida has seen higher existing year-to-year home sales, according to the state association.
Statewide sales of existing condominiums in the third quarter rose 56 percent compared to the same time the previous year. This marks the fourth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
Statewide sales activity in 3Q 2009 also increased over 2Q 2009’s sales figure in both the existing home and existing condo markets, Florida Realtors’ records show. For 3Q 2009, statewide sales of existing homes rose 2.82 percent over the 2Q 2009 figure; existing condo sales statewide in 3Q 2009 increased 0.37 percent over the 2Q 2009 level.
To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts.
“Most economists think the recession is over, but people are afraid to spend money as unemployment keeps going up, which creates problems for every sector of the real estate market,” said Tim Becker, the center’s director.
On the positive side, survey respondents expressed increasing optimism about their own business outlook, and predicted great opportunities for future investment. Becker noted that the euro’s favorable exchange rate against the dollar and the availability of desirable commercial property at low prices is encouraging international investors.
“Everybody thinks that Florida will rebound because we have so much going for us – the sun shines every day and there are a lot of advantages to living here,” he said. “Foreign investors see that too and believe their prospects are good for long-term investments.”
All of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the third quarter compared to the same three-month-period a year earlier, while 17 MSAs showed gains in condo sales.
The statewide existing-home median sales price was $145,400 in the third quarter; a year earlier, it was $185,600 for a decrease of 22 percent. The 3Q 2009 statewide existing-home median sales price was 1.25 percent higher than 2Q’s statewide existing-home median sales price of $143,600. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.
In the year-to-year quarterly comparison for condo sales, 14,797 units sold statewide for the quarter compared to 9,488 in 3Q 2008 for a 56 percent increase. The statewide existing-condo median sales price was $106,100 for the three-month period; in 3Q 2008, it was $160,100 for a decrease of 34 percent.
Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.16 percent in 3Q 2009; one year earlier, it averaged 6.32 percent.
© 2009 Florida Realtors®
Statewide sales of existing condominiums in the third quarter rose 56 percent compared to the same time the previous year. This marks the fourth consecutive quarter for increased statewide sales in both the existing home and condo markets compared to year-ago levels.
Statewide sales activity in 3Q 2009 also increased over 2Q 2009’s sales figure in both the existing home and existing condo markets, Florida Realtors’ records show. For 3Q 2009, statewide sales of existing homes rose 2.82 percent over the 2Q 2009 figure; existing condo sales statewide in 3Q 2009 increased 0.37 percent over the 2Q 2009 level.
To gain insight into current trends in Florida’s real estate industry, the University of Florida’s Bergstrom Center for Real Estate Studies conducts a quarterly survey of industry executives, market research economists, real estate scholars and other experts.
“Most economists think the recession is over, but people are afraid to spend money as unemployment keeps going up, which creates problems for every sector of the real estate market,” said Tim Becker, the center’s director.
On the positive side, survey respondents expressed increasing optimism about their own business outlook, and predicted great opportunities for future investment. Becker noted that the euro’s favorable exchange rate against the dollar and the availability of desirable commercial property at low prices is encouraging international investors.
“Everybody thinks that Florida will rebound because we have so much going for us – the sun shines every day and there are a lot of advantages to living here,” he said. “Foreign investors see that too and believe their prospects are good for long-term investments.”
All of Florida’s metropolitan statistical areas (MSAs) reported increased sales of existing homes in the third quarter compared to the same three-month-period a year earlier, while 17 MSAs showed gains in condo sales.
The statewide existing-home median sales price was $145,400 in the third quarter; a year earlier, it was $185,600 for a decrease of 22 percent. The 3Q 2009 statewide existing-home median sales price was 1.25 percent higher than 2Q’s statewide existing-home median sales price of $143,600. According to industry analysts with the National Association of Realtors® (NAR), sales of foreclosures and other distressed properties continue to downwardly distort the median price because they generally sell at a discount relative to traditional homes. The median is a typical market price where half the homes sold for more, half for less.
In the year-to-year quarterly comparison for condo sales, 14,797 units sold statewide for the quarter compared to 9,488 in 3Q 2008 for a 56 percent increase. The statewide existing-condo median sales price was $106,100 for the three-month period; in 3Q 2008, it was $160,100 for a decrease of 34 percent.
Low mortgage rates remain another favorable influence on the housing sector. According to Freddie Mac, the national commitment rate for a 30-year conventional fixed-rate mortgage averaged 5.16 percent in 3Q 2009; one year earlier, it averaged 6.32 percent.
© 2009 Florida Realtors®
Friday, November 6, 2009
Senators push for Chinese drywall relief
A bipartisan group of senators from states hard hit by defective Chinese drywall is seeking a Senate resolution to urge banks and mortgage lenders to offer homeowners some relief.
The resolution introduced Wednesday carries no penalties but encourages lenders to delay or suspend mortgage payments – without penalty – for families with contaminated drywall. The lawmakers noted that some homeowners are juggling two housing payments because the contaminated drywall has made their homes uninhabitable.
“The dangers and health risks posed by contaminated drywall have forced thousands of families out of their homes and into temporary living situations, and many such families are unable to afford an additional financial burden,” the resolution states.
“Many homeowners are stuck with contaminated drywall in their homes and they need all the help they can get,” said Florida Sen. Bill Nelson, who has been pushing the Consumer Product Safety Commission since February to investigate imported drywall. “This is just one more way we’re trying to get them some relief.”
The senators estimate some 1,300 homeowners in 26 states and the District of Columbia are dealing with health and safety issues linked to the use of contaminated drywall.
Homeowners have reported a range of problems with corrosion and odors, as well as headaches, rashes and nosebleeds.
A federal task force investigating the problem last week reported it had found elevated levels of two elements in some Chinese-made drywall: sulfur and strontium. But it still does not know whether there is any link between the import and the problems homeowners are experiencing.
The results of additional tests are expected later this month.
Sens. Nelson and George LeMieux from Florida; Mary Landrieu and David Vitter of Louisiana; and Mark Warner and Jim Webb of Virginia introduced the resolution.
Copyright © 2009 The Miami Herald,
The resolution introduced Wednesday carries no penalties but encourages lenders to delay or suspend mortgage payments – without penalty – for families with contaminated drywall. The lawmakers noted that some homeowners are juggling two housing payments because the contaminated drywall has made their homes uninhabitable.
“The dangers and health risks posed by contaminated drywall have forced thousands of families out of their homes and into temporary living situations, and many such families are unable to afford an additional financial burden,” the resolution states.
“Many homeowners are stuck with contaminated drywall in their homes and they need all the help they can get,” said Florida Sen. Bill Nelson, who has been pushing the Consumer Product Safety Commission since February to investigate imported drywall. “This is just one more way we’re trying to get them some relief.”
The senators estimate some 1,300 homeowners in 26 states and the District of Columbia are dealing with health and safety issues linked to the use of contaminated drywall.
Homeowners have reported a range of problems with corrosion and odors, as well as headaches, rashes and nosebleeds.
A federal task force investigating the problem last week reported it had found elevated levels of two elements in some Chinese-made drywall: sulfur and strontium. But it still does not know whether there is any link between the import and the problems homeowners are experiencing.
The results of additional tests are expected later this month.
Sens. Nelson and George LeMieux from Florida; Mary Landrieu and David Vitter of Louisiana; and Mark Warner and Jim Webb of Virginia introduced the resolution.
Copyright © 2009 The Miami Herald,
Tuesday, November 3, 2009
South Florida homebuyers leery about Chinese drywall
Home buyers in South Florida are petrified of tainted Chinese drywall.
Some rule out entire neighborhoods or houses and condos built within the past seven years. Others don’t want anything to do with builders known to have used Chinese drywall. And buyers who do sign contracts seek assurances that might not prove reliable.
Mike and Sandy Siegel are asking potential neighbors in the Tivoli Isles community west of Delray Beach about any evidence of the drywall. The couple had a handyman climb into the attic of the home they want to buy to make sure Knauf Plasterboard Tianjin, a Chinese maker of drywall and other building materials, is not written on any of the boards.
“There are no signs yet, but you never know,” Mike Siegel said. “Once you get this, it’s a son of a gun.”
As many as 100,000 homes in the nation, including 36,000 in Florida, could have the imported wallboard, which is thought to corrode wiring, copper pipes, appliances and metals and give off a “rotten egg” stench.
Worse, homeowners say, are the nosebleeds, respiratory problems and other symptoms they blame on the drywall.
However, state and federal officials said last week they had yet to link the drywall to any health risks.
Builders used the material from China because of a shortage of American-made drywall earlier this decade during the housing boom and after the busy hurricane seasons of 2004 and 2005. Even older homes renovated in recent years could have the suspect drywall.
Most builders have refused to fix the homes, and lenders and property insurers have offered little or no relief.
Homeowners who can afford to are moving into rental housing. Others are abandoning the properties.
Hoping to avoid any drywall-caused problems, “buyers are asking a lot more questions and doing a lot more research,” said Jon Klein, a real estate agent for Coldwell Banker in Broward County. “They’re very cautious. Very cautious. I would be, too.”
Some buyers refuse to consider homes that don’t have Chinese drywall if they’re in developments where the problem is prevalent.
“It’s fair to say that anyone who buys a home in a community with Chinese drywall is adversely affected as well,” Boca Raton attorney Allison Grant said. “It hurts everybody’s property values.”
The Broward County property appraiser is slashing assessed values of affected homes in half, and Palm Beach County also plans to cut values.
Based on those assessments, nearby homes without Chinese drywall also stand to lose value.
Drywall complaints in Broward and Palm Beach counties generally have come from Parkland, Pompano Beach, Davie, Miramar, Boca Raton and communities west of Delray Beach and Boynton Beach.
Parkland has been the unofficial epicenter for the drywall complaints in South Florida. About 150 homes there have it, Mayor Michael Udine said.
Heron Bay and Parkland Golf & Country Club are the two developments most affected in Parkland. Many people expected all home sales in those communities to decline, but that hasn’t been the case, Udine said.
Udine said he has heard that investors are trying to get deals on homes with the drywall and factoring in the cost to repair them, even though the federal government has not yet issued an official remediation plan.
But many buyers who intend to live near reported cases of Chinese drywall are trying to make sure they don’t inherit a major hassle.
Debbie Anderson, an agent for Prudential Florida Realty, held an open house recently for a new home in Parkland Golf & Country Club.
“I had a pretty good turnout – about 10 people,” Anderson said. “Almost every one, as soon as they walked in, asked, ‘Does this house have Chinese drywall?’ “
Some real estate agents note it in marketing materials if a home does not have problem drywall. Other agents prefer to exclude any mention of it.
Under Florida law, sellers and their real estate agents must disclose any known material defect or condition that would affect the value of a home.
The Florida Association of Realtors added a disclosure form for Chinese drywall, but there is no state law requiring sellers to use it.
Buyers are starting to hire inspectors such as Howard Ehrsam to test homes before they commit to the purchase.
“They’ve invested a lot of emotion and energy into finding homes, and if they’re tainted, they get pretty upset,” Ehrsam said. “But they’re also relieved that they’re finding out now versus later.”
Ehrsam, a civil engineer and general contractor from Port St. Lucie, said he saw a need for the niche business across Florida and beyond because many home inspectors don’t know how to detect Chinese drywall.
He and his workers check a home’s mechanical systems, electrical outlets and appliances for corrosion. They also dig into walls and ceilings.
They summarize their findings in a written report, but it does not come with a guarantee. Because so little is known about Chinese drywall, Ehrsam said all he can offer is a “professional opinion.”
Julie Fass cast a wide net across Broward County in her search for a home and was drawn to one development in Coconut Creek.
The curb appeal was striking, and the interior of the home had plenty of bells and whistles. But then she found out the builder was dealing with Chinese drywall elsewhere, so she reluctantly moved on.
Fass’ search continues, though she has narrowed it to Weston because most of the homes there were built before 2005, she said. When she does find a house, she will check the drywall in the attic to make sure it’s not from China.
“There are so many things you have to think about when you’re buying a home, and this is just one more,” Fass said. “It’s a pain.”
Copyright © 2009 Sun Sentinel, Fort Lauderdale, Fla
Some rule out entire neighborhoods or houses and condos built within the past seven years. Others don’t want anything to do with builders known to have used Chinese drywall. And buyers who do sign contracts seek assurances that might not prove reliable.
Mike and Sandy Siegel are asking potential neighbors in the Tivoli Isles community west of Delray Beach about any evidence of the drywall. The couple had a handyman climb into the attic of the home they want to buy to make sure Knauf Plasterboard Tianjin, a Chinese maker of drywall and other building materials, is not written on any of the boards.
“There are no signs yet, but you never know,” Mike Siegel said. “Once you get this, it’s a son of a gun.”
As many as 100,000 homes in the nation, including 36,000 in Florida, could have the imported wallboard, which is thought to corrode wiring, copper pipes, appliances and metals and give off a “rotten egg” stench.
Worse, homeowners say, are the nosebleeds, respiratory problems and other symptoms they blame on the drywall.
However, state and federal officials said last week they had yet to link the drywall to any health risks.
Builders used the material from China because of a shortage of American-made drywall earlier this decade during the housing boom and after the busy hurricane seasons of 2004 and 2005. Even older homes renovated in recent years could have the suspect drywall.
Most builders have refused to fix the homes, and lenders and property insurers have offered little or no relief.
Homeowners who can afford to are moving into rental housing. Others are abandoning the properties.
Hoping to avoid any drywall-caused problems, “buyers are asking a lot more questions and doing a lot more research,” said Jon Klein, a real estate agent for Coldwell Banker in Broward County. “They’re very cautious. Very cautious. I would be, too.”
Some buyers refuse to consider homes that don’t have Chinese drywall if they’re in developments where the problem is prevalent.
“It’s fair to say that anyone who buys a home in a community with Chinese drywall is adversely affected as well,” Boca Raton attorney Allison Grant said. “It hurts everybody’s property values.”
The Broward County property appraiser is slashing assessed values of affected homes in half, and Palm Beach County also plans to cut values.
Based on those assessments, nearby homes without Chinese drywall also stand to lose value.
Drywall complaints in Broward and Palm Beach counties generally have come from Parkland, Pompano Beach, Davie, Miramar, Boca Raton and communities west of Delray Beach and Boynton Beach.
Parkland has been the unofficial epicenter for the drywall complaints in South Florida. About 150 homes there have it, Mayor Michael Udine said.
Heron Bay and Parkland Golf & Country Club are the two developments most affected in Parkland. Many people expected all home sales in those communities to decline, but that hasn’t been the case, Udine said.
Udine said he has heard that investors are trying to get deals on homes with the drywall and factoring in the cost to repair them, even though the federal government has not yet issued an official remediation plan.
But many buyers who intend to live near reported cases of Chinese drywall are trying to make sure they don’t inherit a major hassle.
Debbie Anderson, an agent for Prudential Florida Realty, held an open house recently for a new home in Parkland Golf & Country Club.
“I had a pretty good turnout – about 10 people,” Anderson said. “Almost every one, as soon as they walked in, asked, ‘Does this house have Chinese drywall?’ “
Some real estate agents note it in marketing materials if a home does not have problem drywall. Other agents prefer to exclude any mention of it.
Under Florida law, sellers and their real estate agents must disclose any known material defect or condition that would affect the value of a home.
The Florida Association of Realtors added a disclosure form for Chinese drywall, but there is no state law requiring sellers to use it.
Buyers are starting to hire inspectors such as Howard Ehrsam to test homes before they commit to the purchase.
“They’ve invested a lot of emotion and energy into finding homes, and if they’re tainted, they get pretty upset,” Ehrsam said. “But they’re also relieved that they’re finding out now versus later.”
Ehrsam, a civil engineer and general contractor from Port St. Lucie, said he saw a need for the niche business across Florida and beyond because many home inspectors don’t know how to detect Chinese drywall.
He and his workers check a home’s mechanical systems, electrical outlets and appliances for corrosion. They also dig into walls and ceilings.
They summarize their findings in a written report, but it does not come with a guarantee. Because so little is known about Chinese drywall, Ehrsam said all he can offer is a “professional opinion.”
Julie Fass cast a wide net across Broward County in her search for a home and was drawn to one development in Coconut Creek.
The curb appeal was striking, and the interior of the home had plenty of bells and whistles. But then she found out the builder was dealing with Chinese drywall elsewhere, so she reluctantly moved on.
Fass’ search continues, though she has narrowed it to Weston because most of the homes there were built before 2005, she said. When she does find a house, she will check the drywall in the attic to make sure it’s not from China.
“There are so many things you have to think about when you’re buying a home, and this is just one more,” Fass said. “It’s a pain.”
Copyright © 2009 Sun Sentinel, Fort Lauderdale, Fla
Monday, November 2, 2009
Citizens gets 5.4 percent Fla. insurance rate hike
State-backed Citizens Property Insurance Corp. has won approval to raise rates by an average of 5.4 percent for homeowner coverage that includes hurricane damage, except in high-risk coastal areas where premiums will be revised later.
Florida Insurance Commissioner Kevin McCarty announced new rates Friday for 719,000 policies of various types including 350,000 homeowners. They will go into effect Jan. 1.
McCarty also approved average statewide increases of 8.8 percent for residential rental properties, 1.7 percent for mobile homeowners, 2.1 percent for commercial mobile home physical damage and 10.2 percent for residential condominium associations.
Citizens, the state’s largest property insurer, separately is seeking higher rates for 330,000 policies in high-risk areas along Florida’s coastlines. A public hearing on that proposal, which includes a 7.7 percent average increase for 256,000 homeowners, is set for Nov. 10.
Both increases together would total $140 million a year in new revenue.
Increases will be even greater than average in some areas based on local risk assessments while many homeowners – largely but not entirely those in inland areas – will see their premiums drop.
The biggest increase among the lower risk homeowner policies is 10.6 percent for non-coastal parts of Collier County in southwest Florida. The largest decrease will be 9.8 percent in 15 mostly rural inland counties and non-coastal parts of two others.
McCarty approved the rates as proposed by Citizens with one exception. He increased the condo association rate by 0.1 percentage point more than requested.
“We’re satisfied,” said Citizens spokesman John Kuczwanski. “We look forward to getting the system updated.”
A new state law lifted a three-year freeze on Citizens rates but also prohibits increases of more than 10 percent a year on any individual policy.
The 10 percent cap does not include a special assessment to rapidly build up cash in the state’s Hurricane Catastrophe Fund, which provides backup coverage for Citizens and other insurance companies. As a result, increases in some areas will slightly exceed 10 percent.
McCarty rejected a request by Associated Industries of Florida, a business trade organization, to raise Citizens rates by 10 percent across the board.
Associated Industries president Barney Bishop argued at an Oct. 20 hearing that Citizens is underfunded and would have to assess other insurance consumers, including businesses, to help pay off losses from a major storm.
The state can impose assessments on policies of nearly all types, including auto, that are sold by any company doing business in Florida to help cover Citizens’ losses.
A 10 percent across-the-board increase would have meant higher rates even for policyholders now in line for reduction because they already are subsidizing those in riskier areas, said Deputy Insurance Commissioner Belinda Miller.
That, however, would have violated another section of law requiring actuarially sound rates based on risk assessments in each rating territory, Miller said.
Citizens is expected to seek similar rate increases during the next several years because it would take an average 35 percent increase to meet the actuarially sound requirement in the lower risk areas and 100 percent in the high-risk areas based on current risk assessments, Miller said.
Copyright © 2009 The Associated Press, Bill Kaczor
Florida Insurance Commissioner Kevin McCarty announced new rates Friday for 719,000 policies of various types including 350,000 homeowners. They will go into effect Jan. 1.
McCarty also approved average statewide increases of 8.8 percent for residential rental properties, 1.7 percent for mobile homeowners, 2.1 percent for commercial mobile home physical damage and 10.2 percent for residential condominium associations.
Citizens, the state’s largest property insurer, separately is seeking higher rates for 330,000 policies in high-risk areas along Florida’s coastlines. A public hearing on that proposal, which includes a 7.7 percent average increase for 256,000 homeowners, is set for Nov. 10.
Both increases together would total $140 million a year in new revenue.
Increases will be even greater than average in some areas based on local risk assessments while many homeowners – largely but not entirely those in inland areas – will see their premiums drop.
The biggest increase among the lower risk homeowner policies is 10.6 percent for non-coastal parts of Collier County in southwest Florida. The largest decrease will be 9.8 percent in 15 mostly rural inland counties and non-coastal parts of two others.
McCarty approved the rates as proposed by Citizens with one exception. He increased the condo association rate by 0.1 percentage point more than requested.
“We’re satisfied,” said Citizens spokesman John Kuczwanski. “We look forward to getting the system updated.”
A new state law lifted a three-year freeze on Citizens rates but also prohibits increases of more than 10 percent a year on any individual policy.
The 10 percent cap does not include a special assessment to rapidly build up cash in the state’s Hurricane Catastrophe Fund, which provides backup coverage for Citizens and other insurance companies. As a result, increases in some areas will slightly exceed 10 percent.
McCarty rejected a request by Associated Industries of Florida, a business trade organization, to raise Citizens rates by 10 percent across the board.
Associated Industries president Barney Bishop argued at an Oct. 20 hearing that Citizens is underfunded and would have to assess other insurance consumers, including businesses, to help pay off losses from a major storm.
The state can impose assessments on policies of nearly all types, including auto, that are sold by any company doing business in Florida to help cover Citizens’ losses.
A 10 percent across-the-board increase would have meant higher rates even for policyholders now in line for reduction because they already are subsidizing those in riskier areas, said Deputy Insurance Commissioner Belinda Miller.
That, however, would have violated another section of law requiring actuarially sound rates based on risk assessments in each rating territory, Miller said.
Citizens is expected to seek similar rate increases during the next several years because it would take an average 35 percent increase to meet the actuarially sound requirement in the lower risk areas and 100 percent in the high-risk areas based on current risk assessments, Miller said.
Copyright © 2009 The Associated Press, Bill Kaczor
Feds: Chinese drywall reports still inconclusive
Federal studies released Thursday cannot yet definitively link imported Chinese drywall to health problems or corrosion of pipes and wires that thousands of U.S. homeowners have been reporting for nearly a year.
The Consumer Product Safety Commission, which is leading the multi-agency investigation, said it needs to further study the matter before it can consider a recall, ban or other solutions to help affected homeowners. Additional results from ongoing studies were due to be released next month.
“The expansive investigation and scientific work that has been done and continues to be carried out is all aimed at providing answers and solutions,” Lori Saltzman, a director in the CPSC’s Office of Hazard Identification and Reduction, said Thursday. “No connections have been made yet.”
Saltzman said the agency, which has so far spent $3.5 million on the studies, has received nearly 1,900 homeowner complaints during one of its largest consumer product investigations in U.S. history.
“We understand this problem has literally driven people from their homes,” she said.
Homeowners, however, were frustrated by a lack of answers.
“So many of us have been really waiting on these results released today to offer us encouragement, but in fact, we’re quite disappointed,” said Holly Krulik, of Parkland, Florida, about 45 miles north of Miami.
Krulik and her husband, Doug, along with their two young children, moved in with her parents about six months ago because she says the Chinese wallboard in their home was making them sick and ruining the house.
“We’re hanging on by a thread here. When is help going to arrive?” said Krulik, who will soon join hundreds of others who have filed lawsuits.
Thousands of homeowners like the Kruliks who bought new houses built with the potentially defective materials are finding their lives in limbo as the lawsuits against builders, contractors, suppliers and manufacturers wind through the courts.
During the height of the U.S. housing boom, with building materials in short supply, American construction companies imported millions of pounds (kilograms) of Chinese-made drywall because it was abundant and cheap. An Associated Press analysis of shipping records found that more than 500 million pounds (226 million kilograms) of Chinese gypsum board was imported between 2004 and 2008 – enough to have built tens of thousands of homes.
They are heavily concentrated in the Southeast, especially Florida and areas of Louisiana and Mississippi hit hard by Hurricane Katrina.
The defective materials have since been found by state and federal agencies to emit “volatile sulfur compounds.” Officials have also found 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, blackening jewelry and silverware, and making them sick.
And some homeowners are reporting that their insurance companies are dropping or refusing to renew their policies based on the presence of the wallboard in their houses, putting them at risk of foreclosure.
The federal test results released Thursday largely confirmed what prior testing had found. The multiple agencies investigating, including the CPSC, the Environmental Protection Agency and the Centers for Disease Control and Prevention, acknowledged the reported health symptoms are consistent with some sort of contamination. But the culprit is unclear.
The Chinese government is assisting with the investigation.
Copyright 2009 The Associated Press
The Consumer Product Safety Commission, which is leading the multi-agency investigation, said it needs to further study the matter before it can consider a recall, ban or other solutions to help affected homeowners. Additional results from ongoing studies were due to be released next month.
“The expansive investigation and scientific work that has been done and continues to be carried out is all aimed at providing answers and solutions,” Lori Saltzman, a director in the CPSC’s Office of Hazard Identification and Reduction, said Thursday. “No connections have been made yet.”
Saltzman said the agency, which has so far spent $3.5 million on the studies, has received nearly 1,900 homeowner complaints during one of its largest consumer product investigations in U.S. history.
“We understand this problem has literally driven people from their homes,” she said.
Homeowners, however, were frustrated by a lack of answers.
“So many of us have been really waiting on these results released today to offer us encouragement, but in fact, we’re quite disappointed,” said Holly Krulik, of Parkland, Florida, about 45 miles north of Miami.
Krulik and her husband, Doug, along with their two young children, moved in with her parents about six months ago because she says the Chinese wallboard in their home was making them sick and ruining the house.
“We’re hanging on by a thread here. When is help going to arrive?” said Krulik, who will soon join hundreds of others who have filed lawsuits.
Thousands of homeowners like the Kruliks who bought new houses built with the potentially defective materials are finding their lives in limbo as the lawsuits against builders, contractors, suppliers and manufacturers wind through the courts.
During the height of the U.S. housing boom, with building materials in short supply, American construction companies imported millions of pounds (kilograms) of Chinese-made drywall because it was abundant and cheap. An Associated Press analysis of shipping records found that more than 500 million pounds (226 million kilograms) of Chinese gypsum board was imported between 2004 and 2008 – enough to have built tens of thousands of homes.
They are heavily concentrated in the Southeast, especially Florida and areas of Louisiana and Mississippi hit hard by Hurricane Katrina.
The defective materials have since been found by state and federal agencies to emit “volatile sulfur compounds.” Officials have also found 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, blackening jewelry and silverware, and making them sick.
And some homeowners are reporting that their insurance companies are dropping or refusing to renew their policies based on the presence of the wallboard in their houses, putting them at risk of foreclosure.
The federal test results released Thursday largely confirmed what prior testing had found. The multiple agencies investigating, including the CPSC, the Environmental Protection Agency and the Centers for Disease Control and Prevention, acknowledged the reported health symptoms are consistent with some sort of contamination. But the culprit is unclear.
The Chinese government is assisting with the investigation.
Copyright 2009 The Associated Press
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