The Leonards claim that when they met with their Nationwide agent, Jay Fletcher, he told them that they did not need flood coverage on their home. Nationwide's billing statements, though, included a notification that the Nationwide homeowners policy did not cover flood loss and that flood insurance was available through the National Flood Insurance Program. The notice told the policyholders to contact their local agents to purchase flood insurance.

 The court said, "Leonard apparently inferred that Fletcher's reason for advising him that he did not need a flood policy was that his homeowners policy would cover any and all water damage that might occur during a hurricane. This was an erroneous inference, and one that might have been avoided had either party to the conversation been more articulate in his inquiry or in his response."

 The court noted that Fletcher's statement was his opinion, that no reason was apparently given for his advice, but that it was not a misrepresentation of fact. Leonard's assumption that wind and water damage occurring during a hurricane would be covered was "inconsistent with the policy exclusion for water damage."

 The court concluded that the policy provided coverage for damage caused by windstorm, including damage caused by water entering through a breach in the roof or walls caused by the wind. The court also said that damage the insured can prove was caused by wind is covered; damage the insurer can prove was caused by water is not covered. The court stated, "Almost all of the damage to the Leonard residence is attributable to the incursion by water."

 The court did not find it necessary to reform the policy.