The Kansas City Star reports that Outraged homeowners learn policies don’t cover flood damage (registration required).

Bill Moseley was in Destin when Hurricane Katrina pounded the Coast. He figured his home in Long Beach would be destroyed, but he consoled himself with the thought that he had insurance and could rebuild. He learned later that he was wrong.

Nothing is left of his house but a slab, but Moseley discovered his insurance company will not cover the damage. The insurer says it was wiped out by the storm surge, which is excluded from his coverage.

“I went ballistic,” said Moseley, who said he was unaware that flood insurance was not included in his policy.

Bob Armstrong of Diamondhead was aware. He knew he wasn’t required to have flood insurance because his home of 10 years was not in a flood zone.

But his wife, a Kenner, La., native, insisted they purchase a policy. Now he’s glad he listened. Katrina brought nine feet of water inside his home.

Outraged? The first individual made a decision not to purchase flood insurance for his BEACH HOUSE when it was available, subsidized by you and me no less, now he wants his insurance company to cover something that isn’t included in any homeowners policy anywhere in the country – passing the bill along to you and me, of course. The second couple purchased the separate coverage and guess what – they’re covered. The rich people who chose to save a buck on the coverage for their beach houses instead of doing what the Armstrong’s and millions of others did have the nerve to say that they are outraged? What’s the word I’m looking for? That’s….outrageous.

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