Insurers are starting to not only deny the claims of homeowners who dare file claims related to the drywall’s effects, which include, apart from the horrible stench, corrosion of pipes and wires. Trouble is, since homeowner’s insurance is a requirement for mortgages, losing that insurance can result in instant foreclosure.
Thousands of homeowners nationwide who bought new houses constructed from the defective building materials are finding their hopes dashed, their lives in limbo. And experts warn that cases like the Ivorys’, in which insurers drop policies or send notices of non-renewal based on the presence of Chinese drywall, will become rampant as insurance companies process the hundreds of claims currently in the pipeline.
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.
Which is great, because if there’s anything America needs right now, it’s more foreclosures! Bring it on.
Insurers dropping Chinese drywall policies [AP] (Thanks, econobiker!)