Many Louisiana residents have experienced the sudden disaster that has swept over many homes, yet again. Due to recent floodwaters from Oklahoma and Texas forcing the Red River to swell up to 37 feet (7 feet above the flood mark), many are now rushing to use sandbags to protect their homes.
This recent flooding has already swallowed many homes.
Unfortunately, the water isn’t expected to dip below the flood mark until the end of June, and there are now reports of rain on the way. Based on the many insurance disputes homeowners went through after Katrina, many want to know what they should expect this time around.
What Does Private Insurance Typically Cover?
What many people do not realize is that private insurance plans often cover damage caused by rain and wind, but not flooding. Flood damage policies are typically provided by the National Flood Insurance Program, which is administered by the Federal Emergency Management Agency (FEMA). However, in Louisiana, less than half of homes and businesses in areas most at risk from flooding are actually covered by flood insurance policies. Insurance policies can also be very lengthy and difficult to interpret.
The Doctrine of Efficient Proximate Cause
In an effort to assist homeowners with ensuring that they are covered under their policies, experienced attorneys can sometimes use the argument that an event that is covered under the policy gave rise to the event that was uncovered (ex. if rain or breach of the levees causes flooding).
However, this can be tricky if the policy specifically states that it is irrelevant whether the flooding was directly or indirectly caused by a covered event. Louisiana courts will typically look at what the predominating cause of the loss is as the correct standard to use in deciding if the loss is covered. Once this cause is identified, the decision comes down to whether this specific cause is included or excluded under the policy. These types of proceedings tend to be very fact-heavy because experts provide testimony on what the exact cause of the loss was (i.e. was the house destroyed in a landslide due to contractor negligence, earth movement, etc.).
National Flood Insurance Program Litigation
National Flood Insurance Program policyholders who are not satisfied with the payments they receive after flooding disasters cause significant damages to their homes file many claims. Typically, FEMA will seek to settle claims as quickly as possible so that litigation is not prolonged
However, your individual case, as reviewed by FEMA during the settlement process, necessitates hiring an experienced attorney to assist you in providing all of the relevant details in order to maximize your claim and recover your losses. FEMA reviews payment demands, case materials, coverage, and payment information in deciding a fair settlement offer for final negotiation, and they work directly with your attorney in doing so.
Harrell & Nowak
The law firm of Harrell & Nowak handles serious, complicated cases, including prosecuting insurance disputes. Homeowners should not be misled and denied insurance that is clearly covered in their policies.
The attorneys at Harrell & Nowak have recovered over $2.5 million in hurricane insurance cases. We are prepared to assist you with any insurance dispute you are facing — contact us today for a free consultation.