Hurricane season is in full swing, but so far this year the Gulf Coast has been spared from a Katrina-like storm. However, survivors of that devasting hurricane did receive another battering -- this time in court.

Recently, insurers won the first round of an epic battle with hundreds of customers who were left homeless and underinsured in the wake of Katrina.

The courtroom victory in Mississippi may not be the last word on the question of whether hurricane coverage is applicable when the damage is wrought by a storm-driven flood. But the decision by U.S. District Judge L.T. Senter Jr. may set a precedent for more lawsuits to follow.

Judge Senter ruled that Paul and Julie Leonard of Pascagoula could be compensated for damage that they could prove was caused by wind but that they cannot collect damages from storm surge caused by Katrina. Nationwide Mutual Insurance Co.'s policies do not cover wind-driven water damage.

A number of legal challenges have been filed by Mississippi Gulf Coast homeowners - including Sen. Trent Lott, Rep. Gene Taylor and two federal judges - whose insurers have denied substantial claims resulting from one of the worst Gulf Coast hurricanes in recorded history.

In a typical case, the homeowner was unaware of an obscure clause that exempts coverage for flooding caused by high winds. And typically the homeowner had not considered flood insurance because the home was located outside a designated flood zone.

In many cases, the homeowner filed a claim based on wind damage, but has no physical proof that the house was demolished before floodwaters rushed over the property.

The performance of the insurance industry on the wind-versus-water question, however, also invites closer scrutiny by industry regulators and encourages consumers to read the fine print on policies that could reveal unpleasant surprises during times of crisis.

According to testimony by the Leonards, Nationwide agent Jay Fletcher told them they didn't need flood insurance. But Mr. Fletcher "did not materially misrepresent the terms of the Nationwide homeowners policy to the Leonards, and Mr. Fletcher did not make any statements which could be reasonably understood to alter the terms of the Nationwide policy," Judge Senter wrote.

During his testimony in the nonjury trial, Mr. Leonard, a Pascagoula police lieutenant, was asked if the agent explained why he did not need flood insurance.

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