First-party insurance professionals should brace themselves for a possible influx of fresh claims related to Hurricanes Charley, Frances, Ivan, Jeanne, Katrina, Rita, and Wilma, among other wind-related events from the unprecedented 2004-2005 storm seasons. The cause for concern can be found lurking in the walls of newly constructed or repaired homes. This alleged mysterious, shadowy danger is Chinese drywall, which commonly refers to gypsum drywall manufactured in China for use in American homes.
Large amounts of Chinese drywall were imported into the U.S. because of a shortage stemming from the housing boom and demand for construction materials used for hurricane-related repairs from the 2004 and 2005 storm seasons.
The federal government is conducting an investigation to quantify the amount of Chinese drywall that came into this country. However, according to Associated Press writer Cain Burdeau, some 500 million pounds of Chinese drywall entered the U.S. marketplace around the time Hurricane Katrina struck the Gulf Coast. It purportedly contained sulfur and a coal byproduct called “fly ash.”
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