A class action lawsuit has been filed on behalf of Greater New Orleans Metropolitan Area homeowners insurance policyholders who have been denied insurance coverage for losses caused by Hurricane Katrina, the law firm of Anderson Kill & Olick P.C. announced. The lawsuit has been brought against fifteen insurance companies that sold All-Risk homeowners insurance policies to Louisiana residents.
The suit seeks compensatory and punitive damages for the companies' conduct designed to avoid payment of claims to policyholders who suffered residential and other property losses caused by the Hurricane. The policyholders' claim that the insurers had not specifically excluded hurricane damage or levees failure in the policies that they sold in the New Orleans area.
The suit alleges wrongful acts by the insurance companies, such as a directive that adjusters arbitrarily apply any nearby waterline and ignore other evidence in order to deny full payment of claims under applicable "flood" exclusions. The insurers also equate windstorm, storm surge and the negligent design, construction and maintenance of New Orleans area levees with "flooding" to exclude coverage.
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