Chinese Drywall Bills Voted Down by Lawmakers
February 12th, 2010
As discussed in the online news source, hamptonroads.com, lawmakers voted against two bills involving insurance coverage of Chinese drywall.
Bills dealing with Chinese dry wall voted down
A House committee Thursday voted down two bills dealing with insurance coverage of Chinese drywall.
The first would have ensured that home-owners could file claims with their home insurance companies for property damage caused by Chinese-made drywall.
The second would have prevented home insurers from canceling policies or raising rates on properties because they were built with the drywall. Both were sponsored by Del. Glenn Oder, R-Newport News.
While lawmakers agreed owners of homes built with Chinese drywall deserve relief, they weren't sure that going through insurance companies was the best way for them to go about getting it.
Commerce and Labor Committee members said the first bill needed further study, after an insurance company representative told them that home insurance policies weren't meant to cover defective products such as the tainted drywall.
They said they were uncomfortable with the second bill because they didn't think state code should tell insurance companies when they can or can't raise rates.
A similar bill that would prevent home insurers from canceling policies or raising rates on homeowners passed the Senate earlier this session but is unlikely to survive its trip through House Commerce and Labor.
To view the online article, please click here
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