NEW ORLEANS (Reuters) - A U.S. District Court judge on Tuesday ruled a Mississippi couple's homeowner policy did not give them coverage for damage from flooding caused by Hurricane Katrina, in a major win for the insurance industry.
Paul and Julie Leonard were awarded $1,228 to cover wind damage but lost their argument that their Nationwide Mutual Insurance policy covered flood damage associated with the storm, which they said cost them more than $130,000.
The case has been closely watched by thousands of homeowners who believe damage from floods swept in by Katrina along the U.S. Gulf coast should be covered under policies generally meant to cover hurricane damage.
Mississippi District Court Judge L.T. Senter said the Leonards, whose house took in 5 feet of water, should have read their policy more closely.
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