Insurers dropping Chinese drywall policies

Thousands of homeowners who bought new houses constructed with Chinese drywall, which emits sulfuric fumes and corrodes pipes, find their lives in limbo. Experts warn that cases where insurers drop policies or send notices of nonrenewal based on the presence of the defective material will become rampant as insurance companies process hundreds of relevant claims now in the pipeline. Louisiana lawyer Daniel Becnel Jr., who represents more than 200 owners of homes containing Chinese drywall, is advising his clients to avoid filing claims with their insurers or they could lose their houses. “I really believe everybody should have an insurance claim with this,” Becnel says. “But it’s hard to tell somebody to go make a claim, then they lose their policy … This is a nightmare for people.” Chris Whitfield, a 29-year-old tire repairman, bought a house in Picayune, Miss., after his home in St. Bernard Parish was destroyed by Katrina. He soon discovered it was built with Chinese drywall, and moved out because it was making his family sick. His claim was denied by his insurer, Nationwide, which followed up with a notice that he would be dropped because his policy didn’t cover unoccupied dwellings. Nationwide spokeswoman Liz Christopher declined to comment. Whitfield offered to move back into the house, but he says he was told he’d first have to replace the drywall. “I don’t know what I’m going to do,” he says.