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When The Flood Valves Open ...

Law360 (February 4, 2011, 12:39 PM EST) -- When Hurricane Katrina struck, the big legal question was whether negligence in the construction of dams or levees constituted “the” cause of loss such that the flood exclusion in property insurance policies would not apply. In a series of decisions, federal and state courts rejected the negligence argument and upheld the flood exclusion.

The next generation of flood exclusion cases is approaching. The question now will be whether the intentional act of a third party — often a municipality — in opening a flood relief valve...
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