Nelson calls out insurance executives over reports of drywall cancellations

October 16, 2009

WASHINGTON, D.C. - U.S. Sen. Bill Nelson is taking Florida property insurance companies to task amid reports that at least two of the state’s top insurers are dropping Florida homeowners over claims their houses were built with tainted Chinese drywall.

In a pointed letter sent Thursday to the chief executives of the 10 largest property insurers in Florida, Nelson asked for an immediate accounting of each company’s policy on covering drywall-related claims and on continuing coverage in cases where homes are found to contain it.  An 11th letter also went to a smaller company specifically cited in a published report for dropping policies.

“I’ve heard from a number of my constituents who suffer every day from the adverse effects of contaminated Chinese drywall installed in their homes,” Nelson wrote.  “Now  Floridians are telling me their insurers are refusing to pay claims or are dropping their coverage.   . . . I find these accounts deeply troubling.”

Nelson’s letter comes amid growing reports that homeowners affected by tainted drywall increasingly are being left in limbo. 

Faced with insurance companies who refuse to pay drywall-related claims and foreign-based manufacturers who deny responsibility, many homeowners are forced to choose between shelling out thousands of dollars to fix their homes or abandoning them altogether.  And, for some families who’ve already left their homes because tainted drywall was making them sick, the insurers’ decision not to pay claims leaves them having to pay both a mortgage and a rent payment with no relief in sight.        

Below is the text of Nelson’s letter:

October 15, 2009

Dear [ CEO ]:

I’ve heard from a number of my constituents who suffer every day from the adverse effects of contaminated Chinese drywall installed in their homes.  These homeowners have to incur large expenses just to make their homes livable again. 

Now Floridians are telling me their insurers are refusing to pay claims or are dropping their coverage.  An account in yesterday’s Wall Street Journal is illustrative.

As a member of the Senate Commerce Committee and a former state insurance commissioner, I find these accounts deeply troubling.  I would like you to provide me a statement regarding your company’s policy on claims and coverage relating to contaminated Chinese drywall.

Thank you for your immediate attention to this matter.  I look forward to your response to these concerns.  If you or your staff have any questions, please contact Clint Odom in my office at (202) 224-8749.

Sincerely,

Bill Nelson

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