COPY-Fla. insurer reverses on Chinese drywall

Associated Press - October 23, 2009 10:04 AM ET

WEST PALM BEACH, Fla. (AP) - Florida's public insurance company now says it will continue covering a couple's retirement home after previously saying the policy wouldn't be renewed because of tainted Chinese drywall problems.

James and Maria Ivory moved back to Colorado after finding their new Gulf Coast residence was built with the problem materials, which emit sulfuric fumes and corrode pipes.

Citizens Property Insurance Corp. denied their claim to fix it, then said the policy wouldn't be renewed. This week, the company said it changed its mind after a second inspection and will renew the policy.

Experts say homeowners across the country could start losing policies on homes containing the tainted materials. In some cases, it's estimated the fix could cost more than owners paid for their homes.

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