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Hurricane Katrina Case: LA Supreme Court Upholds Flood Exclusion

By Brad E. Harrigan
April 30, 2008

In a case the insurance industry has been closely monitoring, the Louisiana Supreme Court unanimously ruled that insurance policies with flood exclusions do not cover flood damage from the failure of man-made levees. Sher v. Lafayette Ins. Co., Nos. 07-C-2441, 07-C-2443, 2008 WL 928486 (La. April 8, 2008).

Plaintiff's case stemmed from losses sustained as a result of wind and flood damage caused by Hurricane Katrina. At the time of the storm, plaintiff owned and lived in a five-unit apartment complex in New Orleans. After the levees were breached, plaintiff's building was flooded with approximately four feet of water. According to plaintiff's own architectural expert, the damage to the basement and lower level of the building was caused entirely by flood damage.

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