I 

111TH CONGRESS 

1ST SESSION H. R. 4094 

To prohibit insurers from canceling or refusing to renew homeowners insurance policies because of the presence of certain types of drywall in 

the home. 

IN THE HOUSE OF REPRESENTATIVES 

NOVEMBER 17, 2009 

Mr. MELANCON introduced the following bill; which was referred to the 

Committee on Financial Services 

A BILL 

To prohibit insurers from canceling or refusing to renew 

homeowners insurance policies because of the presence 

of certain types of drywall in the home. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Drywall Victims Insur5 ance Protection Act of 2009’’. 

6 SEC. 2. PROHIBITION OF CANCELING OR DECLINING TO 

7 RENEW HOMEOWNERS INSURANCE BECAUSE 

8 OF PRESENCE OF CERTAIN DRYWALL. 

9 It shall be unlawful for any insurer— 


tjames on DSKG8SOYB1PROD with BILLS
2 

•HR 4094 IH

1 (1) to cancel, or decline to renew, any coverage 

2 for homeowners’ insurance for any single-family 

3 housing based on the presence, or possibility of pres4 ence, in the housing of any drywall that has a cov5 ered characteristic; or 

6 (2) in any renewal of homeowners’ insurance 

7 for such a structure, to discriminate in the amount, 

8 rates for coverage, or other terms of such coverage 

9 based on the presence, or possibility of presence, in 

10 the structure of any drywall that has a covered char11 acteristic. 

12 SEC. 3. PRIVATE CAUSE OF ACTION. 

13 (a) IN GENERAL.—An insured who has been ad14 versely affected by a violation of section 2 by an insurer 

15 may bring a civil action against the insurer in an appro16 priate Federal or State court for relief under subsection 

17 (b). 

18 (b) RELIEF.—Upon proof of a violation of section 2 

19 by a preponderance of the evidence in an action described 

20 in subsection (a), the court may award appropriate legal 

21 and equitable relief, including temporary, preliminary, and 

22 permanent injunctive relief and compensatory damages. 

23 (c) ATTORNEYS’ FEES AND OTHER COSTS.—In any 

24 action or proceeding under this section, the court shall 

25 allow a prevailing plaintiff reasonable attorneys’ fee as 


tjames on DSKG8SOYB1PROD with BILLS
3 

•HR 4094 IH

1 part of the costs, and shall include any expert fees as part 

2 of the attorneys’ fee. 

3 SEC. 4. DEFINITIONS. 

4 For purposes of this Act, the following definitions 

5 shall apply: 

6 (1) COVERED CHARACTERISTIC.—The term 

7 ‘‘covered characteristic’’ means, with respect to any 

8 drywall, that the drywall— 

9 (A) was imported from, or originated in, 

10 China at any time during the period consisting 

11 of calendar years 2004 through 2007; or 

12 (B) contains elevated levels of sulphur or 

13 strontium. 

14 (2) INSURED.—The term ‘‘insured’’ means any 

15 natural person who has purchased coverage for 

16 homeowners’ insurance. 

17 (3) INSURER.—The term ‘‘insurer’’ means any 

18 entity, including any affiliate thereof, that is licensed 

19 or admitted to engage in the business of providing 

20 homeowners’ insurance in any State. 

21 (4) HOMEOWNERS’ INSURANCE.—The term 

22 ‘‘homeowners’ insurance’’ means property and cas23 ualty insurance coverage against losses to single24 family housing. 


tjames on DSKG8SOYB1PROD with BILLS
4 

•HR 4094 IH

1 (5) SINGLE-FAMILY HOUSING.—The term ‘‘sin2 gle-family housing’’ means a residential real prop3 erty (including individual units of condominium and 

4 cooperative structures) designed principally for the 

5 occupancy of from one to four families. 

Æ 


tjames on DSKG8SOYB1PROD with BILLS