Chinese Drywall Raising Serious Home Insurance Issues

An emerging indoor air quality problem is turning out to be a home insurance headache for people in various parts of the country.

The problem, Chinese drywall, has been making national news for months as homeowners, many of them in the Southeastern United States, have reported fumes that cause dizziness, respiratory difficulty and other health ailments. Some affected homes have even experienced corroded appliances because of the strong fumes.

At least one class-action lawsuit has been filed as a result of the Chinese drywall problem, which began during the housing boom when there was a general shortfall of the building material. Homes affected by the problem have been rendered virtually uninhabitable in many cases, causing thousands of dollars or more in damages.

This may seem like a matter between insurance carriers and homeowners, but a recent Associated Press report warns that this isn't necessarily the case. The wire service cites some homeowners who have had their claims denied and been told their policies will not be renewed because it is considered a builder defect, which is not often covered by insurers.

The story serves as a reminder that along with taking the time to shop for the right home insurance policy, people also need to do their homework and thoroughly check any house they plan on buying for structural problems and any other defects that could haunt them later.