Another "ill wind" story. Flood damage not covered

2theadvocate.com | News | Judge: Only wind damage covered:

"Insurance companies do not have to pay for hurricane-related flood damage if homeowners had coverage only for wind storms, a federal judge ruled Thursday in a lawsuit over disputed insurance claims in the wake of Hurricane Rita.

“You get what you pay for, and what they paid for was wind damage,” said U.S. District Judge Richard Haik in a ruling that seemed to leave a bad taste in his mouth. “… I wish I didn’t think that. I am not a fan of insurance companies.”

Attorneys for homeowners had argued that under Louisiana law, insurance companies must pay total losses on a destroyed home when at least some of the damage was caused by a hazard covered by insurance — unless explicit notice is given otherwise on the policy application."