Chinese Drywall and Home Insurance Problems March 26, 2010

As of late, home insurance companies have been making it a habit to cancel policies on those who have had issues related to Chinese drywall. If not cancel coverage, at the very least they are increasing rates. Under two proposed laws in Louisiana, this would no longer be allowed.

The bills come from Rep. Walt Leger III and Sen. Julie Quinn. These bills would provide some protection to the hundreds of homeowners in the state who have are victims of Chinese drywall. Both bills are meant to prohibit the insurance company from canceling coverage or increasing rates related to Chinese drywall – even if a claim has been filed.

Leger said, “’I want to encourage people who have legitimate claims to make those claims. That’s what they pay premiums for.” In other words, there are homeowners out there who may be afraid to make Chinese drywall related claims because they are worried about what their insurer will do.

Louisiana has been hit hard by Chinese drywall. There are more than 2,100 claims filed in federal court, and many of them have originated in Louisiana. Hopefully these laws will be passed so those dealing with Chinese drywall can receive some relief.