A Mississippi judge has upheld the exclusion for damage caused by water and water-borne materials in an insurance contract, in one of the first wind vs. water insurance claims lawsuits arising out of Hurricane Katrina.

Judge L.T. Senter affirmed in a written opinion in Paul Leonard and Julie Leonard v. Nationwide Mutual that the insurer had met the burden of proving that the majority of the “damage to the Leonard’s property was caused by water and water-borne materials within provision 1(b) of the Property Exclusions section of the Nationwide policy.”

The Leonards filed suit against Nationwide, their homeowners insurer, after the company paid them around $1,660 for wind damage to their home that resulted from Hurricane Katrina in August 2005. The Leonards estimated that the total damage to their house came to more than $130,000 and sought to recover more than $158,000 for the damage, interest, attorneys’ fees and expenses. Judge Senter rejected the Leonards’ arguments.

Judge Senter’s opinion can be found online at the U.S. District Court Southern District of Mississippi Web site.

August 22, 2006