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Monistere v. State Farm Fire & Casualty Ins. Co.

ELR Citation: 39 ELR 20039
Nos. No. 07-31149, (5th Cir., 02/17/2009)

The Fifth Circuit reversed a lower court decision ruling that homeowners were entitled to the full amount of their insurance policy for severe flood damage sustained during Hurricane Katrina. The homeowners filed suit after they were unsatisfied with the original amount they were paid under their insurance policy. The lower court entered judgment in favor of the homeowners for the full policy amount after applying the "total loss doctrine," a legal theory occasionally used to determine coverage under certain private insurance policies. But that theory is inapplicable to federal regulations governing the National Flood Insurance Program. Based on the federal regulations, the homeowners are not entitled to more than what they have already received.