NEW ORLEANS (AP)- The Louisiana Supreme Court has ruled an insurer isn't obligated to pay for water damage from the failure of New Orleans area levees after Katrina.

The ruling reverses a state appeals court decision that favored a New Orleans property owner in his suit against Lafayette Insurance Company.

In November, the 4th Circuit Court of Appeal concluded Lafayette's homeowner policy failed to exclude all forms of flooding because its language was ambiguous.

But the Louisiana Supreme Court disagreed, saying Lafayette is
entitled to limit its liability for damage from a levee breach.

Lafayette and other insurers say their policies cover damage from wind but not flooding, including water from a levee breach.

(Copyright 2008 by The Associated Press. All Rights Reserved.)