The Louisiana Senate committee has decided that insurance companies won't be able to cite floodwater marks or homes shifted from their foundations as the only reason for denying claims, reports the Insurance Journal.

The bill was authored by Senator Julie Quinn in response to the many calls she's received from homeowners who didn't have flood policies, but maintain that water was driven into their homes by the fierce winds of Hurricanes Katrina and Rita—and should therefore be covered under traditional home insurance.

According to the Insurance Journal, Sen. Quinn said that insurance companies have been quick to assume that they don't owe homeowners anything based soley on watermarks or the physical movement of the structure.

Insurers that violate Quinn's bill would be required to pay attorney fees, court costs and a penalty to the homeowner—equal to three times the damages covered by the insurerd's policy. Insurance company officials, however, have cited technical problems with Quinn's bill, stating that are mediation programs and courts to handle these types of disputes. Nonetheless, it appears that officials remain optimistic that they can work with Quinn to correct any disparities in the bill.

While lawmakers said they'd like to see some of the bill's provsions "tweaked", the Insurance Journal reports that the Senate Insurance Committee approved the bill 4-1; the bill will move to the full Senate for debate.

The determination of Quinn's bill will affect thousands of hurricane victims, as well as the pockets of Louisiana State insurers.

[Check out the Insurance Journal's article here.]