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Should an Insurance Company cancel a home with Chinese Drywall?
January 20, 2011 - Kevin Schuman
Recent headlines have several insurance companies cancelling or non renewing homes with Chinese Drywall. Insurance underwriting is the selection and qualifying of a risk. A home with a worn roof has a greater chance of loss as does one with a trampoline, unfenced pool, or aggressive dog. Chinese Drywall corrodes plumbing and air conditioning pipes and could lead to water damage. In an extreme case, because of the effect to property value, it could lead to arson. Insurance is a large group of people, pooling their money, for the few that have a loss. Ask yourself if you are willing to pay more for insurance to offset losses caused by Chinese Drywall. Let me know what you think.
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