“A partial summary judgment in favor of State Farm Fire & Casualty Company was issued this past Thursday.” Two homeowners filed this case “claiming they were entitled to the full value as a result of some damage to their homes from wind damage, a covered peril, and ‘total loss’ of their homes caused by water damage, a noncovered peril.” The courts ruling in favor of State Farm showed they agreed “that the valued policy law was inapplicable to the claims where the covered property was not rendered a total loss by a peril covered under the insurance policy.”
To me this case is really simple. The insurance company is not going to pay the insured for noncovered flood damage to your house. If you want to protect your house against flood damage then you need to purchase a flood insurance policy. That argument makes perfect logical sense if you are sitting on the sidelines but what if you were the one who lost your home? Losing your home and not getting the full value amount for your home is a bitter pill to swallow especially when you know you should have purchased flood insurance.
Then again a lot of people in Louisiana never thought floodwaters would not only reach their homes but destroy them also. Were it not for the levees rupturing these two homeowners and many others would not be worrying about the intricacies of insurance law.
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