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Oren[_2_] Oren[_2_] is offline
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Default OT - Insurers dropping Chinese drywall policies

On Sat, 17 Oct 2009 11:27:52 -0700, "Nonny" wrote:

We now live in Las Vegas, where during the 2001-2007 time frame,
hundreds of thousands of new homes were built during a real estate
feeding frenzy. While we lucked out on the drywall issue here
(several gyp mines locally and all local drywall), there were
other alleged construction defects that were or are being
litigated or negotiated. As far as I know, no contractor or
subcontractor knowingly installed anything that would have harmed
a home or the occupants. However, the litigators really had a
feeding frenzy with construction defect suits.

One of the fights here involved the elimination of weep screeds at
the bottom of stucco siding. Another involved Kitec plumbing
fittings and flexible piping, while another involved a different
reinforcement in slabs. There are also issues even with copper
pipe that comes in contact with soil under a slab. In NC, we had
the issue of disintegration of man made lap siding and
delamination of man made stucco over foam.

My reason for mentioning this is to illustrate my belief that
virtually any change from the old, tried and true methods or
materials of construction carries risk of varying degree. Homes
are built to last for generations and Murphy's Law applies to new
materials, construction techniques, different suppliers and man
made anything installed in a home. Even the most benign change
from what's been done for years and years with success can result
in a construction defect.

The insurance companies were dinged badly with the black mold
issue of the 90's. Whenever somebody discovered mold, even after
a window leaked for years, it was considered to be an insurable
event. Now, the folk with drywall problems are feeling the
spin-off effect. Insurance companies might exclude drywall
related issues in policies, but some judge somewhere at some time
will decide for the "social good" to make them responsible. Their
only hope to escape this is to cancel or refuse to renew policies
once they become aware of the drywall problem. I sure can't blame
them, since it's a huge liability otherwise.


In Las Vegas, Sun City Summerlin found defects in homes, built pre
1995. Homes with PEX pipes and some brass connectors (Zurn ??!). The
connectors were made in Canada. They contained to much Zinc during
the manufacturing and corroded years later, leaked behind stucco,
caused mold, on and on.

The judge declared a class action case. IIRC, they went after the
Canadian company and the builder.

It might still be pending - dunno.