Thu 5 Nov 2009
McCarty: Chinese Drywall Not a Covered Peril
Posted by under Emerging Risks , Regulation , Chinese DrywallNo Comments
An unexpected piece in the Chinese drywall puzzle has just been uncovered. Florida Insurance Commissioner Kevin McCarty has made clear that in his opinion insurers have no obligation to cover defective Chinese drywall because it is not a covered peril. The Sarasota Herald Tribune reports that at a meeting with state legislators earlier this week, McCarty told them the insurance industry is not responsible for the drywall problem and that ultimately the federal government would have to come up with a funding solution. The November 4 article by Lloyd Dunkelberger quotes McCarty saying: “This is not a covered claim. This is not a covered peril. We need to come up with a plan for a funding source to take care of this.” McCarty described the Chinese drywall issue as a “very, very significant problem,” and stated that the financial responsibility lies with the Chinese drywall manufacturers rather than insurance companies. […]
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