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Louisiana Lawmakers Act to Protect Homes with Faulty Drywall

March 25, 2010 · Posted in Home Insurance · Comment 

March 24, 2010 – As one of the states strongly afflicted with a spate of homes suffering from faulty drywall manufactured in China, Louisiana officials have introduced legislation aimed at protecting homeowners dealing with drywall problems.

Separate bills introduced this week in the Louisiana Senate and House of Representatives prevent home insurers from raising homeowners insurance rates or canceling policies on homes in which owners file claims arising from drywall manufactured in China. Both measures also would prevent insurers from raising homeowners insurance rates of canceling coverage if an inspection shows the home contains contaminated drywall – whether or not an insurance claim had been filed. Although the bill in the House of Representatives seeks to protect only residential homes, the Senate bill would extend the same protections to commercial properties and would levy a $1,000 fine on insurers violating the proposed law.

Louisiana lawmakers said they have not heard of any cases in which homeowners had their homeowners insurance plans either canceled or premiums increased due to the problem with some Chinese drywall, but they have had many constituents express concerns they might have their premiums increased or homeowners insurance policies canceled because of the drywall problem, according to the Associated Press.

A recent federal study of 51 U.S. homes equipped with drywall manufactured in China indicates a “strong” link between in-home corrosion and drywall contents. Investigators from the U.S. Consumer Product Safety Commission with the help of Chinese officials recently conducted an indoor air study of dozens of homes recently equipped with drywall manufactured in China. Without declaring results conclusive, researchers say there is merit to the more than 2,000 complaints the federal agency has received from U.S. homeowners.

“We now can show a strong association between homes with the problem drywall and the levels of hydrogen sulfide in those homes and corrosion of metals in those homes,” investigators for the Consumer Product Safety Commission said in their announcement of results.

Research results indicated hydrogen sulfide gas emitted by contaminated drywall is the primary culprit in corroding copper and silver in homes equipped with Chinese drywall. Researchers also discovered elevated levels of formaldehyde in newer homes – whether or not they had Chinese drywall. Modern cabinetry and carpeting emit low levels of formaldehyde, according to researchers. Although formaldehyde and hydrogen sulfide gas amounts detected were too low to pose safety risks, federal investigators suspect a combination of them and other compounds commonly found in homes potentially might be harmful to structures and public health.

Officials for the Consumer Product and Safety Commission intend to work with federal lawmakers to implement corrective measures and look into potential health problems tied to the substandard drywall.

As the U.S. housing boom hit its peak near the turn of the century, a shortage of construction materials forced many builders to utilize drywall manufactured in China. Unfortunately, some Chinese drywall contains gypsum and trace elements of strontium sulfide, which can emit corrosive sulfuric compounds and an odor similar to rotten eggs.

A recent report by the Associated Press indicates some 500 million pounds of Chinese gypsum board was imported to meet domestic construction demands – particularly between 2004 and 2008 when thousands of homes along the Gulf of Mexico were being rebuilt in the wake of four hurricanes slamming into Florida during a month-long stretch in 2004 and Hurricane Katrina and Hurricane Rita destroying large areas of New Orleans and other Gulf Coast communities in 2005.

Federal officials estimate about 100,000 homes in the United States contain Chinese drywall. The total cost of replacing the faulty drywall could reach $25 billion, according to the Towers Perrin consulting firm. Some Chinese drywall manufacturers have said their products are safe and suggested bad gypsum tainted only some of the materials shipped to the United States in recent years. Many homeowners have blamed the Chinese drywall for corroding their homes’ copper pipes, causing other property damage and making family members ill.