“Homeowners insurers are generally denying coverage based on the standard pollution exclusion in the homeowners’ policy.”
first of all, it’s not pollution to begin with. amazing that the insurance companies are going to have to pay out quite a bit, if it means rebuilding homes with the proper construction equipment… the pollution they are talking about is like the running water, or the factory released pollution. many homeowners are going to probably have to go through a lon process in more ways than one to get this resolved. can’t wait to have the ho policy cover and then the constuctiion companies cover. at least there will be work for those who need it….
Notwithstanding insurance issues, affected homeowners should have a viable cause against the merchants who sold the defective gypsum board and the manufacturers who made the stuff.
Doesn’t anyone remember the tort concept of products liability or the warranty of merchantability?
There is indication that at least some of the manufacturing compaines are OWNED by the Chinese Government. Any unsatisfied judgements should create rights to assert claims against the US Treasury debts owned by the Chinese Government.
The real tragedy would be if our government somehow gave the Chinese “get out of jail” protection much in the same way as they assured the Saudi businessmen and government officials who funded part the 9-11 terrorism attacks would be held immune from prosecution or civil litigation.
OK – everybody with a house that has Chinese Drywall, gut it. No one bu you will pay for it, but that’s ok – should only cost, with plumbing, electrical and heating / cooling systems, about 60% of your home’s relpacement cost.
Good luck with that.
Tthere was a story last week on a P/L case in Louisiana. Correct me if I’m wrong but that judge basically ruled that (a) the corrosion wasn’t the cause of loss but rather WAS the loss, (b) that the pollution exclusion was never written nor intended to apply to emission of noxious fumes from building materials, and (c) that the building materials are not defective because they’re still capable of serving their intended function.
problem, not whether that drywall is serving it’s purpose, because it is, but it’s not! it should not create problems with the rest of the house and it’s building supplies, like wire… fumes, well, even better because we still have not figured out the extent of the fumes to those sleeping from humans to animals… still too much to play with!
FEMA trailers..why don’t you let me live in your house and you can live in mine? Mine is brand new, beautiful-has all the bells and whistles, they just don’t all work and have a crummy odor to them too. Oh, did I mention that there’s $125,000 downpay as well as a mortgage? I am a great believer in carrying sufficient ins coverage..I have flood (and so not in a flood zone), carry excess liability and property. My carrier of 30yrs didn’t offer me Defective Materials Insurance when I was spending my nest egg..
You will be there one day too- just outside of retirement-buy NEW so won’t have those repairs or maintenance. This could be YOU, your mom or your kid. This is the most awful delimma that I am facing. Don’t speak so quickly the next time. We are home owners, tax payers-hard workers-family people..NOT free loaders.
Just happened to my house and not yours…LUCKY YOU.
I am not all that familiar with HO policies but I am not sure it would be a covered cause of loss. If they did i am sure they would subrogate against everyone who installed it, sold it and manufactured it.
Then you have the issue if the pollution exclusion would come into play on those parties policies. Who knows? I am sure it would be challenged? But even before you get to that, is their liability? Contractors had a short supply of sheetrock because of HUrricanes. Reasonably did they have a need to test the sheetrock from foriegn manufacturers? Again, more litigation. Ultimately it will fall on the manufacturers who are over seas so the importers get hit. Any way you look at it it will be a long time before a resolution.
Glad you are a great beliver in insurance even if you don’t entirely understand how it works. Go back & re-read some of the other posts about coverage issues. No such thing as defective materials coverage on your homeowners policy. Maybe you should not judge so quickly yourself.
Most of the Chinese (located) manufacturers and even the suppliers of gypsum for the drywall are actually owned by separately incorporated companies owned by a German parent company (largely Knauf). There may be no assets outside of insurance to satisfy a judgment. Worse, depending on the state laws, pollution exclusions may be upheld. There will not be any cause of action against national Chinese interests anymore than someone could file a lien against the US Treasury for a Ford products liability claim.
Sounds like a good idea, but I doubt that the damage that was caused by the drywall is enough to cover our debt to them. If we demand that they pay for it, they might get pissed and say “Ok, we will pay for that, but we demand that you pay the rest of your debt to us right now, and we are not going to accept the US dollar. We see you have some nice national monuments, perhaps we can make a deal”. We need a diplomatic solution to the problem.
Just curious but I have not seen any defense citing the Homeowner policy exclusion for “latent defect, inherent vice, or any quality in property that causes it to damage or destroy itself” – I’m assuming the the home is one entity, and not a collection of components or is this correct? Can one of you claims or legal types explain why this would not be applicable?
Thanks
“Homeowners insurers are generally denying coverage based on the standard pollution exclusion in the homeowners’ policy.”
first of all, it’s not pollution to begin with. amazing that the insurance companies are going to have to pay out quite a bit, if it means rebuilding homes with the proper construction equipment… the pollution they are talking about is like the running water, or the factory released pollution. many homeowners are going to probably have to go through a lon process in more ways than one to get this resolved. can’t wait to have the ho policy cover and then the constuctiion companies cover. at least there will be work for those who need it….
Notwithstanding insurance issues, affected homeowners should have a viable cause against the merchants who sold the defective gypsum board and the manufacturers who made the stuff.
Doesn’t anyone remember the tort concept of products liability or the warranty of merchantability?
There is indication that at least some of the manufacturing compaines are OWNED by the Chinese Government. Any unsatisfied judgements should create rights to assert claims against the US Treasury debts owned by the Chinese Government.
The real tragedy would be if our government somehow gave the Chinese “get out of jail” protection much in the same way as they assured the Saudi businessmen and government officials who funded part the 9-11 terrorism attacks would be held immune from prosecution or civil litigation.
OK – everybody with a house that has Chinese Drywall, gut it. No one bu you will pay for it, but that’s ok – should only cost, with plumbing, electrical and heating / cooling systems, about 60% of your home’s relpacement cost.
Good luck with that.
Where’s my Chinese Drywall Bailout money?
Always enjoy your perspectives and level-headed comments. You could be my favorite underwriter!
Tthere was a story last week on a P/L case in Louisiana. Correct me if I’m wrong but that judge basically ruled that (a) the corrosion wasn’t the cause of loss but rather WAS the loss, (b) that the pollution exclusion was never written nor intended to apply to emission of noxious fumes from building materials, and (c) that the building materials are not defective because they’re still capable of serving their intended function.
problem, not whether that drywall is serving it’s purpose, because it is, but it’s not! it should not create problems with the rest of the house and it’s building supplies, like wire… fumes, well, even better because we still have not figured out the extent of the fumes to those sleeping from humans to animals… still too much to play with!
Put ’em in the leftover FEMA trailers!
FEMA trailers..why don’t you let me live in your house and you can live in mine? Mine is brand new, beautiful-has all the bells and whistles, they just don’t all work and have a crummy odor to them too. Oh, did I mention that there’s $125,000 downpay as well as a mortgage? I am a great believer in carrying sufficient ins coverage..I have flood (and so not in a flood zone), carry excess liability and property. My carrier of 30yrs didn’t offer me Defective Materials Insurance when I was spending my nest egg..
You will be there one day too- just outside of retirement-buy NEW so won’t have those repairs or maintenance. This could be YOU, your mom or your kid. This is the most awful delimma that I am facing. Don’t speak so quickly the next time. We are home owners, tax payers-hard workers-family people..NOT free loaders.
Just happened to my house and not yours…LUCKY YOU.
How about making the Chinese pay? We could deduct it from the money that China loaned us.
This is a mess any way you look at it.
I am not all that familiar with HO policies but I am not sure it would be a covered cause of loss. If they did i am sure they would subrogate against everyone who installed it, sold it and manufactured it.
Then you have the issue if the pollution exclusion would come into play on those parties policies. Who knows? I am sure it would be challenged? But even before you get to that, is their liability? Contractors had a short supply of sheetrock because of HUrricanes. Reasonably did they have a need to test the sheetrock from foriegn manufacturers? Again, more litigation. Ultimately it will fall on the manufacturers who are over seas so the importers get hit. Any way you look at it it will be a long time before a resolution.
I feel for the homeowners on this.
Glad you are a great beliver in insurance even if you don’t entirely understand how it works. Go back & re-read some of the other posts about coverage issues. No such thing as defective materials coverage on your homeowners policy. Maybe you should not judge so quickly yourself.
Most of the Chinese (located) manufacturers and even the suppliers of gypsum for the drywall are actually owned by separately incorporated companies owned by a German parent company (largely Knauf). There may be no assets outside of insurance to satisfy a judgment. Worse, depending on the state laws, pollution exclusions may be upheld. There will not be any cause of action against national Chinese interests anymore than someone could file a lien against the US Treasury for a Ford products liability claim.
Sounds like a good idea, but I doubt that the damage that was caused by the drywall is enough to cover our debt to them. If we demand that they pay for it, they might get pissed and say “Ok, we will pay for that, but we demand that you pay the rest of your debt to us right now, and we are not going to accept the US dollar. We see you have some nice national monuments, perhaps we can make a deal”. We need a diplomatic solution to the problem.
Just curious but I have not seen any defense citing the Homeowner policy exclusion for “latent defect, inherent vice, or any quality in property that causes it to damage or destroy itself” – I’m assuming the the home is one entity, and not a collection of components or is this correct? Can one of you claims or legal types explain why this would not be applicable?
Thanks