Insurers are hailing a decision by the Florida Supreme Court that held that a state law requiring full payment when a home is a total loss does not apply when part of the destruction involves flood damage excluded by policy language. In a unanimous decision, the Supreme Court sent the case back to the trial court level to determine the appropriate payments for the damage. The case involves a family whose home was a total loss following Hurricane Ivan due to wind and flooding. The family sued. Initially, a lower court ruled in their favor but the state Supreme Court reversed the decision on appeal.

Flood Exclusion Upheld By Fla. High Court (National Underwriter 9/24/07)

September 25, 2007