….The chicken-or-egg debate over whether wind or water contributed the greatest damage to property has been around a long time, but Hurricanes Katrina and Rita in 2005 triggered an unprecedented mass of consumer complaints and challenges to insurer denials. An important principle of insurance law has always been that if policy language is ambiguous, than the decision should redound to the benefit of the policyholder. While thousands of cases remain to be resolved as a result of Katrina and Rita, the trend is becoming clear: a string of court rulings have found ACC clauses to be "unambiguous," handing insurers a significant legal victory.
…More exclusions mean less protection for property owners. In coastal areas of
…. Private insurers as well as state-backed high risk insurance pools that sell coverage in areas where the private carriers refuse to tread, all have an obligation to inform the public in clear English what the contract covers and what it does not. State regulators should play a more active role. And the age-old principle: caveat emptor... let the buyer beware, has never been more important.