Hi All --

I thought some people might be interested in this. Perhaps you all have seen
President Bush saying he is going to try to find out about insurance coverage
for damages and losses related to Katrina. It's going to be a matter of
determining what was the cause of the losses, where a chain of causes is
involved. I
know which way most insurers will prefer to argue it! But then again, there
will be a lot of pressure from public scrutiny on these determinations that
may
help people in a bind - let's hope. This blurb is from Mealey's Insurance
Litigation Reports.

Regards,
Ricki
Utah

Homeowners' CLASS ACTION seeks coverage for flooding in new orleans

BATON ROUGE, La. - A class action lawsuit filed Sept. 16 against the
Louisiana insurance commissioner and numerous insurance companies seeks a
declaration
that flooding in the City of New Orleans sustained during Hurricane Katrina
was caused by breaches in the city's flood walls and does not fall within the
exclusions for "rising water" or an "act of God," contained in most standard
homeowners' policies (Gladys Chehardy et al., v. Lousiana Insurance
Commissioner
J. Robert Wooley, et al, No. 536451, 19th Jud. Dist).

The plaintiffs also ask the 19th Judicial District Court for the Parish of
East Baton Rouge to find that the losses from water entering the city are
attributable to a windstorm, a standard covered peril in the insurance
policies.

According to the complaint, up to 160,000 homes are estimated to be unusable
as a result of the hurricane and it appears that after investigations are
completed, there will tens and possibly hundreds of thousands of people who
could
be part of the class action lawsuit.

"The issues presented in this Petition should be decided by declaratory
judgment inasmuch as their resolution involves a major public policy issue
which
will affect thousands of Louisiana citizens, many of whom will suffer enormous
emotional and financial damage until the issue is decided.  While the
insurance
companies may continue to make investment income during the course of any
protracted legal proceedings, homeowners on the other hand have little
recourse
but to sit idly by awaiting a decision, all the while being unable to begin
reconstruction or renovation of their homes until they have the money to pay
their contractors.   As a result, without resolution of this issue by
declaratory
judgment, thousands of homeowners will be left stranded for months, or perhaps
even years," the plaintiffs say.

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