A judge in New Orleans has ordered three insurance companies to reinstate their policies covering Dillard University, which was badly damaged in Hurricane Katrina 13 months ago. Two of the companies had canceled their flood-insurance coverage for the institution following the storm, and the third had reduced its flood coverage from $50-million to $10-million.

The university sued the companies this past summer (The Chronicle, August 16), arguing that the reductions in coverage violated an emergency order issued by the Louisiana Department of Insurance. The judge’s order, which stands for the duration of the legal proceedings, prohibits insurers from canceling or not renewing policies on property that had been damaged in the hurricane.

Dillard suffered an estimated $300-million in damage from Katrina.

The order, issued last week by Judge Mary Ann Vial Lemmon, of the U.S. District Court, said Dillard had presented enough evidence to demonstrate that it would prevail at trial. She ordered that the policies in effect when the storm hit be extended until March 1.

Her ruling will increase the coverage by the Lexington Insurance Company, and reinstate the flood coverage of the Axis Specialty Insurance Company and the RSUI Indemnity Company. Altogether, they provide $500-million in flood coverage to Dillard.