Louisiana Lawmakers, Regulators Responding to Chinese Drywall Issues

The controversy over drywall from China is heating up in Washington and in the Southeastern states most affected by the use of the product following the 2004 and 2005 hurricane seasons, including Louisiana.

In a letter to Federal Trade Commission Chairman Jon Leibowitz, Sen. Mary Landrieu of Louisiana, raised concerns about deceptive practices of companies that prey on consumers with defective drywall and asked the Commission to fully investigate the activities of such companies. The letter was also signed by Sens. Bill Nelson (Fla.), David Vitter (La.), Thad Cochran (Miss.), Roger Wicker (Miss.) and Jim Webb (Va.).

Louisiana Commissioner of Insurance Jim Donelon says homeowners whose properties are contaminated with defective Chinese drywall and who have been covered for more than three years by their homeowners insurer have the right to continue their coverage while vacating and remediating their home. He said some insurance companies have tried to cancel policyholders, citing vacancy or failure to maintain the home in insurable condition.

U.S. Congressman Charlie Melancon of Louisiana has introduced federal legislation that would prevent insurance companies from cancelling or failing to renew homeowners’ policies due to Chinese drywall in their homes. The Drywall Victims Insurance Protection Act would also prevent insurers from changing rates or altering the type or amount of coverage based on problems stemming from the product.

It’s estimated that the number of homes in Louisiana affected by tainted drywall from China ranges from 1,500 to 4,000.

Topics Legislation Louisiana China