The water that poured through the levee breaches was driven into Lake Pontchartrain by the wind, too. The conventional wisdom is that "water that comes from the ground level up" is flood damage, no matter how it got there. Water that enters a structure from above, through wind-damaged walls or roof, is covered by the standard (non-flood) homeowners or commercial property policy.
You can bet that people who didn't have flood coverage have been busy inflicting post-Katrina roof damage before the adjusters view the property. Yu can also bet that the insurance companies will be scrutinizing those satellite and aerial photos, comparing them with damage claims subsequently reported.
If Allstate simply agreed to cover all water damage regardless of whether a flood policy was in place, lots of people will be suing for the return of flood policy premiums, and rightfully so.
"If Allstate simply agreed to cover all water damage regardless of whether a flood policy was in place, lots of people will be suing for the return of flood policy premiums, and rightfully so."
Let's see...nearly thirty years worth of premiums. Woo hoo! Count me in!
I can see the argument too, but it just doesn't work that way. Pretty much all the water on earth, at one point or another, came from above. Flooding caused by heavy rains, one could argue, came from above and so should be covered. It isn't. A flood caused by a tree that gets blown over onto a dam was caused by wind and should be covered, right? It isn't.
Interesting stuff. All I really know is I'm glad all I have to worry about is snow.