Lawyers for a group of public adjusters who worked in Louisiana handling wind-vs.-water claims caused by Hurricane Katrina are asking a federal appeals court to reinstate their suit for damages under the federal whistleblowers law.
Specifically, they said in an appeals brief that a federal district court judge in New Orleans applied the wrong standard in tossing their claim. The claim alleged that insurers mishandled Hurricane Katrina claims in Louisiana under the write-your-own program by fraudulently “misconstruing wind damage as flood.”
In general, the lawyers said in their appeals brief, the write-your-own system under the National Flood Insurance Program “creates a perverse opportunity for WYO insurers to profit by misconstruing wind damage as flood, thereby saving billions of dollars that should otherwise be paid under the homeowners' insurance policies.”
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