5th Cir. Says 'Flood' Exclusions Bar Coverage for New Orleans Canal Damage

NEW ORLEANS - The 5th Circuit Court of Appeals on Aug. 2 reversed a lower court and ruled that "flood" exclusions in standard homeowners policies issued by several Louisiana insurers unambiguously bar coverage for damage that occurred when New Orleans canals were breached during Hurricane Katrina. In re: Katrina Canal Breaches, No. 07-30119 [Humphreys v. Encompass Insurance Co., 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] (5th Cir.).

The ruling by the three-judge panel reversed …