Dr. and Mrs. Corban owned a home in Long Beach, Mississippi which was damaged as a result of Hurricane Katrina on August 29, 2005.  The Corbans had purchased a homeowner’s policy from USAA which afforded protection from windstorm damages.  The Corbans properly notified USAA of their claim for damages.  USAA conducted an inspection of the Corbans’ residence and made the determination that the majority of physical damage was a result of flooding from storm surge which was excluded by the homeowner’s policy.  As such, USAA refused to pay for damages it alleged were the result of water or damages which resulted from wind and water acting together.  The Corbans filed suit.

Both parties filed Motions for Partial Summary Judgment on the issues of the “anti-concurrent” (“ACC”) clause contained in the homeowner’s policy which excluded damages from wind and water acting together.  Interpreting a 2007 decision of the 5th U.S. Circuit Court of Appeals, the Circuit Court of Harrison County found that “storm surge” was an excluded peril and that the ACC exclusion contained in the policy effectively barred coverage for any damage caused by water alone or by wind and water in combination.  The Corbans appealed to the Mississippi Supreme Court for clarification on these rulings.

The state’s High Court issued a favorable ruling for the Corbans and found that a homeowner’s policy may exclude damages when caused by a combination of wind and water acting together, but the ACC exclusion did not apply because the wind and water had acted separately.  The Court determined that a jury must determine which damages were caused by water and which were the result of wind in the Corbans case.  USAA recently settled the Corbans’ claim without the need for a jury trial.

To read the decision:  http://www.mssc.state.ms.us/Images/Opinions/CO58302.pdf