By
Associated Press
.
Published: Tue, November 06, 2007 - 5:37 pm
Last Updated: Tue, November 06, 2007 - 5:40 pm
NEW ORLEANS (AP) - A federal appeals court has upheld policylanguage that a major insurer has used to deny hundreds of
policyholders' claims on the Gulf Coast after Hurricane Katrina.
The 5th U.S. Circuit Court of Appeals in New Orleans today
(Tuesday) overturned a federal judge's ruling that a key clause in
State Farm Fire and Casualty Company's homeowner policies is
ambiguous and therefore cannot be enforced.
State Farm says its policies cover damage from a hurricane's
wind but not its rising water.
State Farm also says damage from a combination of wind and flood
water can be excluded from coverage by "anti-concurrent cause"
language in its policies.
U.S. District Judge L.T. Senter Junior in Gulfport, Mississippi,
had ruled that this clause is ambiguous and can't be enforced.
A three-judge panel from the 5th Circuit disagreed, siding with
State Farm.
The 5th Circuit's ruling came in lawsuit filed by John and
Claire Tuepker, State Farm policyholders whose home in Long Beach,
Mississippi., was demolished by the 2005 storm.
The 5th Circuit also upheld Senter's ruling in the Tuepkers'
case that State Farm policies do not cover damage from storm surge,
a hurricane's wind-driven water.
(Copyright 2007 by The Associated Press. All Rights Reserved.)
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If you did not elect to pay for flood damage to insure your home/business, well you shouldn’t get any money for your damages. If you live near the gulf coast and don’t carry flood insurance that’s your own fault, not the fault of your insurance carrier. My parents carrried flood insurance on their home and payed thousands more each year for the protection. If you can’t afford the additional cost of flood insurance, don’t live near the coast, go further inland and on high ground. I lived in Bayou La Batre, went through several floods. I’d never move back there. I’ve been in Mobile for 25+ years and never have to worry about flooding.