Homeowners who lacked flood insurance coverage will not be able to recover losses from Katrina-related water inundation from their homeowners’ policies, according to a ruling issued today by the United States Court of Appeals for the Fifth Circuit. The New Orleans-based appellate court reversed a lower court’s ruling that certain insurers’ policies could be interpreted to cover water damages from a levee breach, where the breach occurred in part because the levee was negligently designed, constructed or maintained. It found that the “enormous and devastating inundation of water into the city” was a “flood,” and was therefore excluded from the homeowners’ policies.

Judge Carolyn Dineen King of Houston, Texas (pictured left) rendered the decision for the Court.  Thanks Houston.