Va. Court: Insurance Doesn't Cover Drywall Damages

The Virginia Supreme Court has dealt a blow to residents who hoped their homeowners' insurance would pay for damage caused by Chinese drywall.

The court on Thursday unanimously ruled against Larry Ward of Virginia Beach, whose claim was denied by TravCo Insurance Co. Ward's lawyer, Richard Serpe, says the ruling means more than 300 other Virginia families affected by the toxic drywall also won't be able to collect on their insurance.

The court cited the insurance policy's exclusions for damage caused by latent defects, defective materials, rust or other corrosion, or pollutants. Serpe said such exclusions are typical in homeowners' policies.

Chinese drywall has been used in thousands of homes, mainly in the South. The material has been blamed for foul odor, health problems and corrosion of pipes and wiring.