Insurance Companies Not Responsible For Hurricane-Related Flood Damage

According to the Insurance Journal, a federal judge in Louisiana has ruled that insurance companies will not be responsible for hurricane-related flood damage if homeowners carry coverage only for windstorms.

“You get what you pay for, and what they paid for was wind damage,” said U.S. District Judge Richard Haik in a ruling May 18.

State Farm was being sued on behalf of two families who were seeking class-action status. Attorneys for the homeowners had argued that insurance companies must pay total losses on a home when at least some of the damage was caused by a hazard covered by insurance. The insurance companies argued that the policies explicitly excluded flood damage. An appeal is possible.