Grassroots Efforts Succeed: Citizens Insurance Company Reverses their Decision

Citizens Insurance Company reverses their decision to not renew an insurance policy due to Chinese drywall

As you know, on September 28, 2009, the blog on our site, www.Chinesedrywallproblem.com first posted the story of James and Maria Ivory.  Mr. and Mrs. Ivory were the victims of Chinese drywall whose homeowners insurance was not going to be renewed by Citizens Insurance.  They were given mere months before they would no longer have insurance on their home.  At that time we asked, if Mr. and Mrs. Ivory, victims of Chinese drywall, could not get insurance from Citizens Insurance, the state backed insurer of last resort, where would people go?

This blog was the first act to bring public awareness to this insurance crisis.  We told the story of how victims of Chinese drywall were going to be further victimized if Citizens, and other insurers, were allowed to cancel or not renew homeowner’s policies.  With this act the law firm of Roberts & Durkee, began their advocacy.

Roberts & Durkee continued to advocate.  Roberts & Durkee demanded that Citizens Insurance, the safety net of insurance for the state of Florida, be required to renew insurance for victims of Chinese drywall.  Roberts & Durkee demanded that Citizens Insurance keep the charge they had been given – to insure every home as long as the home was insurable.

The law firm of Roberts & Durkee wrote to Senator Bill Nelson, a leader in the fight for victims of Chinese drywall, and to Representative Wexler, another leader in this area, and to Governor Crist and to Insurance Consumer Advocate Shaw.  These elected officials then joined the fight.  I was called by Insurance Consumer Advocate Shaw and he told me how he and Sen. Nelson had been discussing our firm’s letters and how they were doing all they could to help us.

The media then began to cover this tragic story.  The Associated Press, the Wall Street Journal, the New York Times, ABC World News Report, all began to cover this problem.  With the help of this media coverage our letter writing campaign and call campaign began to become overwhelming. Here are a few of the stories that magnified this issue:

• The Associated Press: Insurers dropping Chinese drywall policies
  
• Wall Street Journal: Insurers Drop Drywall Victims
• ABC World News: Toxic Drywall Ruins Homes and Health

On Thursday Insurance Consumer Advocate sent letters to most of the major insurance companies, including Citizens, asking various questions about dropping policy holders who were victims of Chinese drywall.

Finally, late Thursday, Citizens Insurance Company reversed their position.  They wrote to James and Maria Ivory and advised them that they had “rescinded” the non-renewal of the policy.  When this was discussed by phone with Citizens, Citizens acknowledged that these efforts forced them to take a second look at their policy and to change their decision. Here’ are two letters from Citizens Insurance stating that they had reversed their decision:

1. Letter to the Ivory family reinstating their insurance.
2. Letter to Senator Bill Nelson

I want to thank all of the victims of Chinese drywall who had their voice heard.  I want to thank the elected officials, specifically Sen. Bill Nelson and Insurance Consumer Advocate Shaw who I know fought on the side of drywall victims.  I want to thank all of the media outlets that helped us bring awareness to this problem.  I want to thank James and Maria Ivory for standing up as victims to be heard.  I want to thank the staff of Roberts & Durkee, my legal assistant Paloma Lendor, my associate Carolina Suarez, and Sandra Haugen, and other members of our team.

Finally, I want to thank Citizens for standing besides their insureds.  In the past, insurance companies that were faced with staggering liability, “have run for cover rather than coverage.  The small print suddenly has been magnified, and insurance companies can been seen scurrying about the courts of this country in search of ways to avoid honoring their policies.” Sandoz, Inc. v. Employer’s Liab. Assur. Corp., 554 F.Supp. 257, 258 (D.N.J. 1983).  However, in face of this disaster, Citizens was honorable enough to “reverse” their position in favor of the insured.

Our grass-root effort was able to change this non-renewal.  One small victory in the middle of the tragedy that is known as Chinese drywall.