Judge rules insurance covers New Orleans homeowners

[frebrd]

I hope this holds up on appeal. Someone really needs to slap down these arrogant insurance companies!

http://today.reuters.com/news/articlenews.aspx?type=domesticNews&storyID=2006-11-29T032456Z_01_N28296233_RTRUKOC_0_US-KATRINA-INSURANCE.xml

Judge rules insurance covers New Orleans homeowners

Tue Nov 28, 2006 10:25pm ET

By Jeffrey Jones

NEW ORLEANS (Reuters) - A Louisiana federal judge has ruled many New Orleans homeowners whose houses sustained water damage after Hurricane Katrina are not excluded from coverage under their insurance policies, a judgment that represents a loss for the insurance industry.

In an 85-page judgment, U.S. District Court Judge Stanwood Duval denied motions by some insurers seeking to stop policyholders from receiving claims they said were prevented by exclusion language spelled out in the policies.

The insurance companies argued the industry standard wording for what constitutes a flood covers any inundation of dry land by water.

But in his decision, which insurers are expected to appeal, Duval drew a distinction between flooding that occurs naturally and the destructive force of the water that rushed into the city when the levees gave way.

He also said insurers' definitions of the word "flood" were ambiguous and did not necessarily include man-made causes, such as levee failures.

"It is the considered opinion of the Court that because the policies are all-risk, and because 'flood' has numerous definitions, it reasonably could be limited to natural occurrences," Duval wrote.

[texpatriot2004]

1. There is a special place in hell for insurance companies and

their reps.

[ThomCat]

4. I hope so.

:grr:

[spag68]

6. and the lawyers that work for them

[Cobalt-60]

2. levee failure is NOT man made

Unless someone actually destroyed the levee.
I'd break it off in this company's backside for making everyone wait for payment.

[kiahzero]

3. So you support the insurance company?

As I read it, the insurance company was arguing that the breach of the levees and subsequent damage constituted a "flood," and the judge said that their exclusion clauses were not clear enough to exclude damage from flood damage from non-natural causes (the levees failing).

[Cobalt-60]

7. no, I dont- Im not a lawyer, though

If Ive come down on their side its a mistake.
I guess I'm uninformed like the people that bought the insurance.

[kiahzero]

10. It happens.

Contracts like this being intentionally opaque is one of the arguments for strictly construing them against the companies.

[RB TexLa]

5. You are correct, it is a flood and not covered

this will be overturned, but that is what appeals courts are for, many times they find themselves providing cover for judges too chickenshit to apply the law when emotions are involved.

[Cobalt-60]

8. I meant it should be covered

I guess i should stick to engineering and leave the law to the professionals.
It was pretty clearly the event the insurance was sold to cover, however.

[RB TexLa]

9. That's the thing, they aren't sold to cover floods

that is what flood insurance is for. This lawsuit is about people's homeowners insurance.

[kiahzero]

11. This wasn't a flood in the normal sense

This was a result of human incompetence.

[alarimer]

14. Yes it is

those assholes at the Corps of Engineers (and the city) KNEW these levees would fail. This is the scenario played out in a number of simulations done over the years, including Hurricane "Pam".

The insurance company lowlifes just want to save themselves some bucks by lying.

[texpatriot2004]

12. kick nm

[fladonkey]

13. In my humble opinion....

if the Democrats in congress really want to do something that is far reaching and will help ALL Americans they should set up a special committee to investigate the insurance industry in this country. In 2004, Florida was hit by 3 very hurricanes--homeowners insurance has gone through the roof--if you can get it--and many companies will not write policies anymore in this state.

[area51]

15. or if they really want to do something far-reaching...

They'd get rid of the insurance industry in healthcare. Universal healthcare would save millions of lives in this country.