By now, most people have heard about Chinese drywall but may not understand what the fuss is all about. It could end up affecting many Homeowners since thousands of homes were built between 2002-2006 when the defective drywall was prevalent. The situation can be summarized easily. Due to a record home building boom and a shortage of materials, drywall was imported from China in order to keep up.  The product emits high levels of hydrogen sulfide gas which in turns corrodes metals and causes irritation to eyes, sinuses, and respitory systems. A recent report by the Consumer Product Safety Commission and the Department of Housing and Urban Development recommends removing the drywall and other affected systems (i.e. electrical wiring, alarm systems, gas supply lines, etc.) So what is the problem? Just put a claim into the Homeowners Insurance company and have the repairs made, right? Unfortunately, defective construction or materials is a peril that is excluded from the standard Homeowners policy. As Florida Insurance Commissioner Kevin McCarty noted in 2009, the damage caused by Chinese drywall is "a malfunction based upon a defective material that was installed in the building. And that historically has been excluded from a homeowner’s policy."

The cost to remove and replace all of the drywall in a standard home could be staggering. Those who have been hit hard by the poor economy and can't afford to make the repairs could ultimately face a nonrenewal by their insurance company. Although the drywall isn't a covered peril, leaving it unrepaired could increase the likelihood of a fire or other damage depending on the extent of the corrosion to wires and pipes. In another scenario, clients who have moved out because of the health problems caused by the drywall might face cancellation due to vacancy. Needless to say, everyone is watching to see how the story with Chinese drywall unfolds.

(If you suspect your home was built with Chinese Drywall, you can find more information at: http://www.cdc.gov/nceh/drywall/ )