MS Gulf Coast: Wind v Water

The Mississippi Supreme Court has agreed to decide how an insurance policy should be interpreted in a wind vs. water dispute over Hurricane Katrina claims.

In Corban vs. USAA, Long Beach policyholders argue the insurance company should cover wind damage to their property, regardless of damage caused by water. Water damage is excluded from coverage. USAA and other insurers argue that policy language also excludes coverage for a combination of wind and water.

The Supreme Court is expected to resolve the issue before the case goes to trial in Circuit Court.

The 5th U.S. Circuit Court of Appeals has sided with insurance companies, finding that policies bar coverage when wind and water act in sequence to destroy property. The Supreme Court is not bound to follow the federal appellate court's ruling, however, because state law governs insurance contracts.

We will see just how much influence the Insurance companies have over the state Supreme Court. My guess is that it has considerable pull within the state's highest court.