La. Federal Judge Finds ISO 'Flood' Exclusion Ambiguous

NEW ORLEANS - The federal judge presiding over Louisiana's consolidated Hurricane Katrina litigation ruled on Nov. 27 that a standard flood exclusion in homeowners' policies is ambiguous and cannot be used to bar coverage for the extensive flood damage linked to breaches in New Orleans' levees. In re Katrina Canal Breaches Consolidated Litigation, No. 05-4182 [Humphreys v. Encompass Insurance Co., et al., No. 06-0169; Vanderbrook v. State Farm Fire & Cas. Co., No. 05-6323; Xavier University of La. v. Travelers Property Cas. Co., No. 06-516; and Chehardy v. State Farm, Nos. 06-1672, 06-1673 and 06-1674] (E.D. La.).

Judge Stanwood R. …