Stephen Barry, attorney for Lafayette, says the outcome of the Supreme Court trial basically determines that a homeowner cannot be made whole twice.

“You can't collect for the same damage twice,” he says. “And you can't re-characterize your damages. The terms of policy must be respected.”

A homeowners' policy and a flood policy with the National Flood Insurance Program exist to cover two separate perils.

“You hear, 'We paid two premiums,'” explains Barry. “But that was for two different perils. The cause of the loss and the perils insured are important.”

It is possible to collect payments under both policies but not above what it would take to make the homeowner whole.

Frught was made whole with her payment from NFIP, the Supreme Court jury says. She paid $75,000 for the home she lived in when Katrina struck, and then sold it for $23,000. Repairs on the house by the buyer were done for about $50,000, Barry says.

Area reports suggest homeowners will now have a hard time getting homeowners' insurance claims adjusted—that companies will wait until the NFIP pays first.

That is not the case, Barry says.

“There are bad faith laws,” he says. “Insurers have a short window to adjust a claim and make a payment or they can face a bad faith claim.”

Another similar case, Robin and Hildrith Wegener vs. Lafayette Insurance Co., remains scheduled for trial.