Property Insurance

Louisiana homeowners harboring dangerous Chinese drywall in their homes received a disappointing blow last week when a federal judge overseeing litigation in New Orleans dismissed their claims against 10 insurance companies. While the judge found in favor of homeowners on some issues, overall it was determined the cases pursued against the companies would be dismissed.

The Chinese Drywall Issue

Well over a year ago, homeowners in Louisiana began to complain of rotten egg smells coming from the walls, corroding pipes and even ill family members as a result of defective Chinese drywall that needed to be removed.

Homeowners began to contact their companies and make home insurance claims only to be turned down, or worse, dropped from their companies for making claims that could cost tens of thousands of dollars.

A group of homeowners later came together to file against companies that refused to pay for drywall replacement and time lost in homes. T

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A number of homeowners are suing insurance companies over inadequate Chinese drywall claims.

The drywall issues, which were found nation-wide, resulted in corroded plumbing and sick home dwellers. While thousands of homeowners are known to have been affected by the defective drywall, so far over 700 homeowners have filed a federal lawsuit, seeking indemnification for their losses.

About the Lawsuit

A New York-based law firm, Anderson Kill & Olick, P.C., is representing homeowners who feel that they’ve been mistreated by their insurance companies. According to the complaint, the plaintiffs seek “a declaratory judgment that the insurance companies and the subcontractor insurance companies are obligated to indemnify the losses arising from claims against WCI Communities Inc.

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In October, we reported on a group of homeowners who had been dropped – or threatened – by their insurance companies because they’d submitted claims for faulty Chinese drywall in their homes. Seen as unfair treatment by the victims and many onlookers, a new advocacy group quickly organized to help the homeowners and begin steps toward resolving the issue.

Chinese Drywall Complaint Center

The new organization is called the Chinese Drywall Complaint Center. Currently, the center is looking for homeowners in Louisiana, Alabama, Florida, Mississippi, Virginia and Southeast Texas – the states with homes that may be affected by the faulty drywall.

Those homes that may have been affected by the drywall, which has corroded plumbing and made home dwellers ill, were built primarily from 2001 to 2008.

Was CPSC Doing Enough?

The U.S.

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