The Mississippi Supreme Court recently issued a unanimous decision in Corban v. USAA, settling legal issues surrounding Hurricane Katrina claims in Mississippi, according to a media release from USAA. USAA noted that in its ruling, the court:
- Endorsed USAA's claim-handling policy in Hurricane Katrina. USAA paid for damage caused solely by wind but did not pay for damage caused by storm surge.
- Affirmed USAA's legal argument that a jury should decide what losses, if any, were caused by wind, and what losses, if any, were caused by flood.
- Found that the water-damage exclusion in USAA's homeowners' policy clearly excludes storm surge.
- Rejected the plaintiffs' argument that the homeowners' policy covers all damage caused by a hurricane, regardless of the cause.
USAA said it already paid the Corbans for damage caused solely by wind and for damages covered by their flood policy. This ruling allows the case to go to trial so a jury can determine if any additional damage was caused to the Corban's home by wind rather than by water/storm surge.
