Homeowners hit by [tag]Hurricane Katrina[/tag] are suing [tag]Nationwide Insurance[/tag] to try to force the company to pay out billions of dollars to pay for [tag]flood damage[/tag] that was not covered by their insurance policies.

Richard F. Scruggs, the Pascagoula attorney who is representing Nationwide customers Paul and Julie Leonard, and argues that the policy sold to them (and other homeowners) included references to [tag]windstorms[/tag] and [tag]hurricanes[/tag]. This made homeowners erroneously believe that they’d be covered for [tag]hurricane damage[/tag], whether from water or wind. Scruggs also says that insurance agents told customers that they didn’t need to seek coverage for flood damage.

Daniel F. Attridge, lawyer for Nationwide, argues that the insurance policy was very clear in its [tag]exclusion[/tag] of flood damage.

Homeowners have been upset that some insurance policies only pay for damage above the highest water stains on their walls. Some homeowners are saying that their homes suffered excessive wind damage long before the flood waters damaged the houses.

Scruggs has filed suit on behalf of approximately 2,000 clients, but opted not to seek [tag]class action[/tag] status for them because that would have delayed the cases too long.

At the heart of many of the cases is the claim that the insurance agent told homeowners they didn’t need flood insurance. Scruggs claims that this expanded the coverage under the policies to include flood insurance. Nationwide counters that the agent was not authorized to expand covereage.