Insurance companies off the hook in Katrina flooding

In a big win for the insurance companies (read: big defeat for property owners who had paid their premiums all these years), the U.S. Supreme Court rejected Katrina victims’ flood insurance case today. The Supreme Court has refused to offer help to Hurricane Katrina victims who want their insurance companies to pay for flood damage to their homes and businesses. The justices on Tuesday rejected appeals from Xavier University and 68 other individuals and businesses seeking to allow their lawsuits against the insurers to go forward. Xavier asked the court to step in after the 5th U.S. Circuit Court of Appeals ruled that the policies did not cover damage from floods, even those that resulted from man-made failures such as the collapsed levees in New Orleans. 

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One response to “Insurance companies off the hook in Katrina flooding

  1. This is a big surprise for me. I thought for sure that the wind caused movement of the water at such a force that the impact caused damage to the levees which then caused the flooding; and wind damage is a covered peril in most homeowners and business insurance property policies.

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