NU Online News Service, Jan. 24, 8:59 a.m.EST

Florida’s last-resort insurance company, the largest writer ofproperty insurance in the state, said it is not cancelinghomeowners’ insurance coverage solely because its policyholders'residences may have defective Chinese drywall.

In an emailed statement, Citizens Property Insurance Corp. saidthat it is sticking to a policy adopted in 2009 when the drywallcrisis first developed.

“As we said then, the mere fact that a covered property may haveChinese drywall does not mean that coverage will be canceled or[non-renewed],” said Citizens spokeswoman Christine Ashburn. “Eachrisk will be evaluated individually and a determination made if theproperty continues to be insurable.”

Citizens was called on to respond to statements made to newssources in Florida by attorney David Durkee. Mr. Durkee representshundreds of people with homes that have the defective buildingmaterial, according to his website. He alleged Citizens wasdropping policyholders with Chinese drywall, which is said to emitfoul-smelling odors and corrode cooper pipes and wiring.

Florida is one of many states affected by Chinese drywall, whichwas imported into the U.S. when wallboard was in short supplyduring hurricane reconstructions and the housing boom.

Late last year a federal judge in New Orleans ruled policy exclusions in homeowners policies cleared insurancecompanies from having to pay losses due to Chinese drywall.