"Inside the Minds of Adjusters"
Cleanfax (05/10) Vol. 25, No. 5, Crosa, Peter J.

Restoration contractors need to keep abreast of the situation involving Chinese drywall determined to have high levels of strontium and sulfur that some believe are responsible for corrosion, odors, and illnesses that make their dwellings uninhabitable. Not all Chinese drywall is toxic, only the drywall made from the sludge of coal plants, but in many instances, the general contractor was unaware of the origin of the drywall in the homes for which they were responsible. The general contractor hired the drywall subcontractor, who then hired the independent laborers who obtained and installed the drywall. Experts say the courts or the federal government will be tasked with determining which party is responsible, but Florida Insurance Commissioner Kevin McCarty says the finger should not be pointed at insurers. "This is not a covered claim. This is not a covered peril," he remarks, adding that the federal government might have to create a program similar to "Cash for Clunkers" to resolve the matter. Restoration contractors must understand that homeowners calling them to replace the toxic drywall and repair the damage it caused do not have insurance coverage for the job. Furthermore, product liability coverage carried by manufacturers and distributors and general liability policies carried by builders and subcontractors may not cover the damage. Thus, they should perform the work only if the builder or property owner guarantees payment and provides a proper contract.

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