Your NPR news source

Illinois Insurer Wins in Appeals Court

SHARE Illinois Insurer Wins in Appeals Court

There’s good news for Illinois-based insurance company State Farm, and bad news for some homeowners who made claims after Hurricane Katrina. Today, the Fifth U.S. Circuit Court of Appeals overturned a ruling favoring homeowners. Fraser Engerman is a spokesman for State Farm.

ENGERMAN: We’re glad that the court reinforced our confidence in the policy language, and we’re pleased the court has resolved these issues in our favor, but we’re continuing to work towards settling the remaining cases in the gulf, irrespective of today’s decision.

State Farm says its policies covered damage from a hurricane’s wind, but not its rising water. The insurer also says damage from a combination of wind and flood water could be excluded from coverage.

The Latest