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Citizens Insurance Responds: Homeowners Not Being Dropped Because of Chinese Drywall

Posted on 18 Jan 2011

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Florida's public insurance company has issued a statement saying that it isn't canceling coverage for homes simply because they have defective Chinese drywall.

Citizens Property Insurance Corp. today said it is sticking to its 2009 policy, and that "the mere fact that a covered property may have Chinese drywall does not mean that coverage will be canceled or nonrenewed. Each risk will be evaluated individually and a determination made if the property continues to be insurable."

The statement comes in response to an announcement from attorney David Durkee, who represents about 300 people with homes containing the defective wallboard, that Citizens has begun issuing notices to policyholders that their coverage will be dropped.

Durkee's client James Ivory, who has a retirement home in Punta Gorda that he doesn't live in because of the tainted material, was informed by Citizens in October 2009 that it would drop his policy over the drywall issue. The company backpedaled after bad publicity, but Ivory has again received a letter saying that Citizens will drop his coverage in March.