[dufekin]

Leaving the homes open and marked for looters and other criminals is the entire point of the exercise. Any damage that occurs to the house as a result is the sole responsibility of the owner, not the insurer, who does not protect against either flooding (including rain) or acts of war. New Orleans probably will increase its property tax rates dramatically and assess property based upon a "potential non-storm value" system; in other words, you pay taxes based upon what your home might have been worth if it were not storm damaged--until it's worth more.

[RummyChick]

What happens if they discover that the flood was the result of a levee break due to a bomb? Does the insurance company still consider it a flood since it is damage due to water?