Va. Supreme Court Says Chinese Drywall Damage Excluded from Coverage Under Homeowners’ Policy

RICHMOND, Va. — The Virginia Supreme Court has ruled that several exclusions in a homeowners’ insurance policy bar coverage of damage caused by Chinese drywall.

Answering in the affirmative a question certified by the 4th Circuit U.S. Court of Appeals, the state high court said Nov. 1 that damage resulting from sulfur-producing drywall is unambiguously excluded from coverage based on policy provisions for latent defects, corrosion, defective materials and pollution.

The ruling effectively confirms a U.S. District Court’s award of summary judgment to Travco Insurance Co., which filed a declaratory judgment action against Virginia homeowner Larry Ward after disclaiming coverage …