China Assisting U.S. in Bad Drywall Investigation
Oct. 27, 2009 – Chinese officials are cooperating with U.S. investigators looking into a rash of bad drywall reportedly causing damage to homes and forcing homeowners to renovate or risk losing their homeowners insurance coverage.
Officials for the U.S. Consumer Product and Safety Commission are investigating claims of Chinese-manufactured drywall causing a variety of serious problems. China’s Administration of Quality Supervision Inspection and Quarantine is assisting in identifying specific problems.
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.
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.
Many homeowners have blamed the Chinese drywall for corroding their homes’ copper pipes, causing other property damage and making family members ill. Officials for the U.S. Consumer Product Safety Commission plan to raise the matter with Chinese officials. Among potential resolutions sought are having the Chinese government pay at least a portion of the cost to replace the faulty drywall and implementing regulatory standards to ensure similar products aren’t sold in the United States. But federal officials caution Chinese officials simply can refuse to cooperate.
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.
While construction crews and contractors quite innocently installed the Chinese-manufactured drywall thousands of homes in recent years, homeowners are getting a jolt from insurers who refuse to renew their homeowners insurance policies and refuse to cover claims, citing a manufacturing defect. Compounding the problem for homeowners is the requirement for insurance on financed homes. When an insurer learns a home contains Chinese drywall and ceases coverage, mortgage companies can foreclose on the homes for failing to provide proper insurance protection.
Officials for the U.S. Consumer Product Safety Commission said they have received 1,500 complaints of property damage and health problems from residents of 27 states and Washington D.C. Health-related complaints generally were about breathing problems, recurring headaches and nose bleeds.