As reported on www.usatoday.com, a litigious battle over insurance claims stemming from Hurricane Katrina seems inevitable. According to the article, written by Kathy Chu, the main issue at hand is whether damage to a home has been caused by high winds or by flooding.
An example of wind damage might include a tree being blown into a home, allowing water to filter in through the resulting hole and damaging the home. Flood damage, however, occurs when high waters rise so high that they enter the home, causing destruction. Whereas most homeowners have insurance policies that cover wind damage, most do not have policies that insure for flood damage, especially in at-risk areas, where it is difficult to obtain. An additional policy is typically purchased through the government at an extra cost above and beyond the homeowners' policy.
This important issue is likely to gain even more national attention, as several lawsuits have already been filed to dispute rejected claims made by insureds. Stay tuned for more information.
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