On June 3 Judge Robert Doumar in U.S. District Court in Norfolk, Virginia, ruled that homeowners insurer Travco Insurance Co. is not liable for damages to a home it insured that were caused by Chinese-made drywall. The judge said that because the policy excluded damage caused by latent defect, faulty materials, corrosion and pollution it does not cover the removal or replacement of the drywall or any damages caused by the material. The decision could affect thousands of lawsuits nationwide. Randy Maniloff, a lawyer who has closely monitored Chinese drywall insurance litigation, said the case, which is one of the first to offer a comprehensive ruling, will be carefully examined by attorneys for insurance companies and homeowners.

Thousands of homeowners, mostly in Florida, Virginia, Mississippi, Alabama and Louisiana, have reported problems with the Chinese drywall, which was imported in large quantities during the housing boom and after a string of Gulf Coast hurricanes. The drywall has been linked to corrosion of wiring, air conditioning units, computers, doorknobs and jewelry, along with possible health effects.

Judge Rules Insurance Doesn’t Have To Pay For Drywall Damage (CBS News 6/4/10)

June 9, 2010