Saving You Money For Life

In the first ruling on a Katrina-related lawsuit pitting homeowner against insurance carrier, Senior District Judge L.T. Senter Jr. ruled today that the insurance policy of plaintiffs Paul and Julie Leonard of Pascagoula, Mississippi, specifically excluded flood damage and that therefore their policy did not cover their losses.

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.

This is the first of hundreds of cases pending against insurance companies who claim that Katrina’s destruction amounted to flood damage – and that any homeowner who lost his home to the storm who hadn’t made the extra investment in flood coverage was out of luck.

More after the jump…

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