Friday, July 31, 2009

More Chinese Drywall News

One of our fellow owners had a preliminary inspection by Tom Schramsky from KB Home that showed signs of Chinese drywall. Schramsky ordered more tests to be conducted by a third-party company. The results from those tests are due in 2-3 weeks.

The owner in question asked Schramsky some questions about how KB Home intends to remedy the problem homes. His summary follows below.



1. If we receive a call saying that we have Chinese drywall in our home, what is the process from there?

ANSWER: Tom will be back by with a customer agreement that we will need to review and sign. We will not be meeting with someone from KB's office, but with Tom. From there, we will have to get an estimate from a mover, since KB cannot pay them directly because of insurance reasons. They will cut us a check and we will then pay the mover. As for housing, he wasn't too clear, but my understanding is that there is a flat rate allowance for housing and the size of your family will determine if additional monies will be allowed for housing. My thoughts are that I would be be very hesitant to sign anything. This contract will be set up to favor KB. The research I've done suggests that KB will essentially have you sign your rights away to any future litigation or claims.

2. What is the condition our home will be returned to and what items will be reused?

ANSWER: The home will be returned to the condition it was at our closing. Any physical changes to the home (paint, chair rails, moldings, etc.) will not be returned to the condition they were in prior to the remediation process. They would get estimates for any upgrades we have made to our homes and provide us with some type of cash settlement. This process may require you to have your receipts for improvements you made to your home. They will move any "affected" product and replace it. That would be the drywall and then possibly wiring, plumbing, AC components depending on whether it is found to be "affected". Anything removed from the home that is not damaged will be returned (cabinets, fixtures, countertops, etc.). Carpet would be replaced but any hardsurfaces would most likely be reused. For example, we installed hardwood laminate in our downstairs and they would "cover" the flooring to protect it during the process.

3. How long is the process?

ANSWER: They are estimating that we will be out of our homes for 8 - 12 weeks.



By the way, this is a good reminder to keep receipts for any upgrades you have done or plan to do to your home. Not only can you use it to prove to a potential buyer someday what you did to improve your home, it can also help protect you in cases of disaster -- whether it be Chinese drywall or a hurricane after which your insurance company may want documentation that you have done work to your home.