Federal court in LA ruled that policy ambiguous and doesn't bar mold coverage

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December 08, 2006

Mold Decision

This just in..........

A federal court in Louisiana on December 4, 2006 ruled that the standard

flood exclusion in the homeowners' policies is ambiguous and cannot be used to

bar coverage for the extensive flood damage linked to the breaches in the New

Orleans' levees. While the Court reasoned the the language in four out of the

five policies could be interpreted to exclude coverage from naturally

occurring events, it would not prohibit claims from negligent or intentional

acts.....as has been alleged in the failure of the levees by some parties.

Man....you have got to believe the insurers will appeal this

decision.........

Posted by Dave Seitter on December 8, 2006 | _Permalink_

(http://blawg.midwestconstructionlaw.com/2006/12/mold_decision.html)