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Quote of the Day - Life as we know it in New Orleans and Tulane has changed. We have leaned on each other and gotten support. And there may be a stronger resolve than there has ever been. - Rick Dickson
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New Orleans Home and Business Insurers Win In Supreme Court

Break In Man-made Levees Causing Flood Damage Not Covered

On February 19, 2008, the United States Supreme Court refused to hear the appeal of Xavier University, New Orleans business owners and homeowners, resulting in the denial of their insurance claims for flood damage arising out of Hurricane Katrina. 

The insurers who had denied coverage won.

While you might think that a Hurricane is an Act of God and covered by insurance, the Fifth Circuit Court of Appeals denied coverage because the direct cause of the damage was the failure of the man-made levees, not the Hurricane.  The Court determined Hurricane Katrina was not the proximate cause of the injuries suffered.

Man-made disasters aren't covered by insurance.  That ruling leaves New Orleanians with only one avenue for recovery of their losses:  the United States Army Corps of Engineers, and frankly, that claim isn't looking too good, either.

So, if there's going to be any relief for these folks, it will be good old tax dollars.  Might as well be the same thing as insurance.  Just not private coverage. 

Printer friendly page Permalink Email to a friend Posted by J. Craig Williams on Tuesday, February 19, 2008 at 21:04 Comments Closed (1) |
 
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