Hurricane Katrina: Legal Issues - Columbus School of Law

from its foundation.
What if damage was caused by both wind and water?
If a loss is the result of a covered cause (wind) and an excluded cause (flood), an insured may be able to argue that
the loss is covered if the covered cause is the most “efficient proximate cause” of the loss. Providence Washington
Ins. Co. v. Weaver, 133 So. 2d 635, 637 (Miss. 1961); Litiz Mutual Ins. Co. v. Boatner, 254 So.2d 765, 767 (1971).
Many insurance companies try to avoid this argument by specifically providing in the contract that loss caused even
in part by water damage is not covered. In some states, these exclusion provisions are valid, but it appears that in
Mississippi, they may not be. The Mississippi Supreme Court refused to enforce a similar provision in an accidental
injury policy which required the injury to be caused solely and independently by an an accident. Bankers Life and
Cas. Co. v. Crenshaw, 483 So. 2d 254, 270 (Miss. 1985). But see Boteler v. State Farm Cas. Ins. Co.), 876 So.2d
1067 (Miss. Ct. App. 2004); Rhoden v. State Farm Fire & Cas. Co., 32 F. Supp. 2d 907, 912-913 (S.D. Miss. 1998).
Mississippi's Attorney General Jim Hood has filed a lawsuit seeking a court declaration that flood exclusions are
unenforceable as against public policy. The outcome of the lawsuit may affect recovery under numerous policies.
If you feel your insurer has inapproriately denied coverage based on the exclusion for loss caused by flood, you
should consult an attorney to review your claim.
This issue will be the focus of ongoing discussion. This section will be updated as additional information is available.
Will a homeowner’s policy cover damage caused by falling trees?
Coverage depends on the language of the policy, however, most policies cover the loss caused when a tree falls on a
house. In addition, some, if not all, of the expense of removing the tree(s) is typically covered. Generally, insurance
companies do not pay for the removal of trees that have fallen in a yard. Some insurers may pay for the cost of
removal if a tree is blocking a drive. Most insurers do not cover damage to trees and shrubs caused by a storm.
Will a homeowner’s policy cover removal of a tree that falls on a neighbor’s home?
Generally, no. If a tree falls from an insured homeowner’s yard onto a neighbor’s house, the loss is covered by the
policy of the homeowner whose house was damaged.
Will a homeowner’s policy cover mold and wet rot?
Many policies exclude coverage for loss caused by mold or wet rot. If, however, the mold or wet rot was caused by a
covered loss, you may be able to recover the loss caused by the mold or wet rot. If your insurer denies a claim based
on the mold or wet rot exclusion, you may want to consult an attorney to review your claim.
[This section will be supplemented as additional research is conducted.]
Will a homeowner’s policy cover loss of use of a home?
If a covered loss makes part of a house uninhabitable, the owner is probably also covered for reasonable additional
living expenses necessarily incurred to maintain the family’s normal standard of living. These might include rental
payments made to obtain temporary housing, eating out and telephone or utility installation costs at a temporary
residence.
Will a homeowner’s policy cover loss of personal property?
Coverage depends on the terms of the actual policy. Standard policies generally cover damage to personal property