After reading Rebecca Mowbray’s story in today’s Times Picayune, it’s likely many others now join SLABBED in wishing we could have said good-bye to David Maurstad before we ever met him. Be certain to keep in mind this quote from reader CLS in our farewell as you read about the new policy language.
If there is no EXCLUSION, then it’s INCLUSIVE. Surely, as head of FEMA/NFIP Mr. Maurstad must have read the exclusions under the federal NFIP contract. Every single Allstate NFIP policy was paid in FULL to the maximum policy limits. ( Nice job Mr. Maurstad and Mr. Wooley)
Editilla at the Ladder will no doubt agree with NOLA attorney Jim Garner in no uncertain terms.
After arguing in court that water from levee breaches shouldn’t be covered by insurance policies, the insurance industry now says it really means it.
As a result of the litigation in New Orleans over Hurricane Katrina, starting in January insurance policies around the country will contain language specifically excluding coverage for manmade floods from broken dams or levee breaches.
But Jim Garner, an attorney who represented the New Orleans homeowner in the case that went to the Louisiana Supreme Court, and who represented Xavier University in the case before the 5th U.S. Circuit Court of Appeal, said the language change proves that most of the policies that were in force when Katrina hit were ambiguous, and insurers should have paid.
“I think it underscores why the people were right. If it was so clear, why did they have to go change it?” Garner said. “The industry knew there was a problem. They’ve now admitted it.” Continue reading “Rebecca Mowbray – Insurance policies will exclude coverage for floods from broken dams and levee breaches STARTING in January”