In the world of Chinese drywall there has not been much good news lately, but today the news of the Louisiana Senate giving final passage to bill that bans insurance companies from dropping coverage on homeowners who have defective Chinese drywall fell on welcoming ears.
The bill passed through both the Louisiana House and Senate with unanimous approval, with a 95-0 passage and a 38-0 vote in the Senate.
The bill will prohibit insurers from cancelling or refusing to renew policies for home owners whose homes contain the tainted wall board. The bill will remain in effect until 2013 and insurers who are found to be in violation will face a $15,000 penalty.
Chinese drywall is believed to have been used in the construction of as many as 100,000 homes built between 2004 and 2007, and has been shown to cause catastrophic damage to the internal wiring and appliances within affect homes.
Numerous lawsuits have been filed against the builders, installers, and manufacturers of Chinese drywall; however, only a small number of affected homeowners have received the compensation they deserve and desperately need.
Today’s news comes as a small victory for many homeowners who were concerned that they may lose their insurance coverage, but there is still a long road ahead.