Louisiana's Valued Property Law may afford rich opportunities for litigation over recovery on property losses, when both flood and wind policies covered a risk, Bob Stratton suggests in Insurance Defense Blog: Katrina Losses/Coverage
He points to a thought-provoking article about last year's Florida decision in Mierzwa v. Florida Windstorm Underwriting Association, Case No. 4D02-4996 (Fla. App., 2004) by John V. Garaffa of Butler Pappas: Florida's "Valued Policy" Law - The Eye of the Storm. The decision and the article raise the spectre that owners of properties insured by one policy against wind and against flood by a separate policy may be demanding a double policy limits recovery, even if they choose not to rebuild, if they have a constructive total loss.
Commentators are now discussing the likelihood that Louisiana may adopt a similar interpretation.
Not discussed in what I've scanned so far is the question of subrogation, or the impact of "other insurance" clauses.
Posted by dougsimpson at September 15, 2005 12:52 PM