Two leading insurance companies in Florida, Universal North America and Citizens Property Insurance, have chosen to cancel policies rather than risk further damages from Chinese drywall.
John Kuczwanski, a spokesman for Citizens Property Insurance Corp. said, “Corrosion leads to a likely future claim for a covered peril such as fire or a water leak.” He added that they have not paid for any damages related to Chinese drywall because all policies specifically outline exclusions for builder defects.
Citizens Property reported, “If there is damage in residence we will send out a nonrenewal notice six months prior to the end of the policy. This is no different thatn if there was a hole in the roof. We would require repair be completed before we renewed the policy” in a statement to Good Morning America.
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