Judge Rules for Insurers in Katrina

A federal judge in Mississippi sided with home insurance companies yesterday and ruled that they did not have to pay for the flooding that destroyed tens of thousands of homes in Hurricane Katrina.

Insurers have already paid $17.6 billion for damage to homes from Katrina that was attributed to wind only. But this was a victory for the companies, because they could have been forced to pay out untold billions more if they had been required to cover damage from flooding caused by the storm. Several hundred thousand homes were damaged or destroyed by Katrina.


from The New York Times