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Insurer told to pay for flood damage

TALLAHASSEE - Citizens Property Insurance Corp. must pay the full amount of damage under homeowners policies even if homes were primarily damaged by flooding and not wind, a judge ruled Thursday.

The decision could affect hundreds of Panhandle residents whose homes were destroyed by 20-foot waves that crashed ashore during Hurricane Ivan, but who only received a check for damage caused by wind.

Citizens, the state-created insurer for people who can't get policies from private companies, said it will appeal Circuit Judge Kevin Davey's ruling.

"We will continue to assert that Citizens should not be paying for losses caused by flood," said spokesman Justin Glover.

Lawyers arguing for homeowners in the class-action lawsuit said state law requires insurers to pay the full amount of a policy even if an uncovered catastrophe causes a portion of the damage.

But Citizens maintains it is legally banned from paying flood claims and believes the judge's ruling essentially means it could have to pay for the full value of a house even if 99 percent of the damage is caused by flooding, Glover said.

While the case is now headed to an appeals court, the ruling was good news for frustrated homeowners.

"It's been a nightmare. I've spent the last eight months of my life dedicated to the recovery of my home," said Tony Thevis, a Navarre Beach resident whose home was destroyed. "Their arrogance, their dismissiveness of my claims, my phone calls my letters, they essentially dared me to bring this suit. I was left with no choice."

Thevis had $409,000 in homeowners coverage. Citizens paid $9,900, he said.

About 350 homeowners have demanded Citizens make full payment on their policies. Others who may not have contested Citizens' decision not to pay flood damage may do so now, Glover said.

The Legislature this month passed a bill that would protect insurance companies from having to pay flood damage when policies only cover wind. The bill, however, isn't retroactive, so it won't affect this case.

[Last modified May 27, 2005, 00:39:13]