Fred Harteis News Articles - Judge rejects claim for Katrina flood damage

Fred Harteis News Articles - A federal judge Tuesday rejected a couple's insurance claim for Hurricane Katrina-related flood damage in a case sure to resonate with homeowners ravaged last year by the storm.

Senior District Judge L.T. Senter Jr. said the insurance policy of plaintiffs Paul and Julie Leonard of Pascagoula, Mississippi, specifically excluded flood damage.

However, Senter ruled that the couple could collect compensation from Nationwide Mutual Insurance Co. for wind damage -- a total of $1,228.16. The Leonards said their Gulf Coast home incurred more than $130,000 in wind and flood damage on August 29, when Hurricane Katrina raked the Gulf Coast.

The lawsuit argued that a Nationwide insurance policy bought by the Leonards in 2004 purported to provide full coverage for any damage typically caused by hurricanes. The lawsuit also said the insurance agent told the Leonards they did not need to purchase additional flood insurance, which is offered separately by the federal government.

Both sides claimed victory.

The Leonards' attorney, Richard Scruggs, interpreted the 13-page ruling as "a big win," despite the modest size of the award. He predicted it would set a precedent for homeowners.

"The insurance companies have been saying to everyone, under that clause that they lost today, that if you had 1 millimeter of saltwater in your home there was no coverage, even if the hurricane winds blew off your roof," he said.

"That, now, is off the playing field," Scruggs said. "They lost that, and that's going to be huge in future cases. This was a big win for us. Monetarily, it could have been more. We asked for more and thought it was justified, but a win is a win in the first game of the season, and you just take it."

In a written statement, Nationwide said, "We are very pleased that the court ruled in our favor and upheld the long-standing flood exclusion language which is foundational to traditional
homeowner policies across the country."

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Source: Cnn.com

About Fred Harteis: Fred Harteis leads Harteis International. Fred Harteis has a background in agriculture and has created many successful business ventures.