Another Blow To Hurricane Katrina Victims

A Federal Judge Has Ruled That An Insurance Company Will Not Be Required to Pay For Damages From Water

This is a case that will likely set precedent for other similar cases where insurance companies have refused to pay for water damages. Thousands of homeowners will likely be affected by the ruling.
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From The Houston Chronicle

Katrina damage ruling bad news for homeowners
By MICHAEL KUNZELMAN
Associated Press

GULFPORT, Miss. — A federal judge ruled today that an insurance company's policies do not cover damage from wind-driven water in a decision that could affect hundreds of upcoming cases related to property damage from Hurricane Katrina.

U.S. District Judge L.T. Senter Jr. ruled that a Mississippi Gulf Coast couple cannot collect damages from storm surge caused by Katrina because Nationwide Mutual Insurance Co.'s policies do not cover wind-driven water damage.

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Story From NPR

Related NPR report about the progress in New Orleans. Citizens still battling bureaucracy.

This new Federal Court decision is likely to compound their troubles. The ruling likely means that fewer homeowners (a lot fewer) will be able to afford to rebuild in Louisiana and Mississippi; this is especially the case in New Orleans, where thousands of homes were destroyed or damaged by flooding.

This may also open the way for corporate entities to move in and buy the land that is unused- something that was feared by longtime New Orleans residents.