Allstate and other insurers won a key battle over Hurricane Katrina damages when a federal appeals court in Louisiana on August 2 ruled that homeowners were not entitled to damages from insurers for levee breaches that flooded New Orleans during the 2005 disaster. "Even if the plaintiffs can prove that the levees were negligently designed, constructed or maintained and that the breaches were due to this negligence, the flood exclusions in the plaintiffs' policies unambiguously preclude their recovery," the Fifth Circuit Court of Appeals said.