NEW YORK (CNNMoney.com) -- A Mississippi couple who lost their home in Hurricane Katrina is getting less than $1,230 after battling Nationwide Mutual Insurance Company to pay for damage done to their home.

In today's top tips we'll tell you what insurance lessons we can all learn from this verdict.

Let's look at the bottom line of this ruling: Insurance companies do not have to pay for flooding that destroyed tens of thousands of homes in Hurricane Katrina, according to a federal judge. But insurers can't cancel wind damage coverage when it happens in combination with flooding.

Here's what homeowners need to know about their policies:

In the past two to three years some insurance companies began adding "wind exclusion" policies to homeowners insurance.

The Independent Insurance Agents & Brokers of America estimates that about 30 percent to 40 percent of homeowners policies along the coast do not cover wind damage.

The exclusion that caught the Mississippi couple was a water-damage exclusion. There has been a dramatic increase in water damage exclusions, according to Amy Bach of UnitedPolicyholders.org.

"Almost every insurance company has expanded their water damage exclusion," she said.

This is why it's so important to look at the 5-30 page explainer document that comes with your insurance policy. Look specifically at the "Exclusions" page. In this case, the exclusions are on page 11 out of 22 pages.

According to the IIABA, the language should be in "Plain English." But even lawyers we spoke to said it was difficult to understand all the complexities. If you don't understand something, you need to sit down with an insurance agent and go over the details.

The plaintiff testified that the insurance agent had told him that he did not need to buy flood insurance. But it's up to you to gauge your home's risk of flooding.

To get a sense of what your risk might be, go to the National Flood Insurance Program's Web site at www.floodsmart.gov or call (888) 379-9531.

The average premium for a flood insurance policy is $400-$500 a year on $150,0000 to $200,000 worth of insurance. You can only get up to $250,000 for your property.

Sometimes it's your insurer who will leave you in the lurch. We've already seen insurance companies refuse to renew homeowner policies. Here are some things you can do if your policy isn't renewed.

First, complain to your state's insurance department if you think you've been treated unfairly. A rise in complaints may trigger an investigation.

You may have to start doing some homework. Check out smaller insurance companies, advises Bach. "Homeowners have to find people with smaller ad budgets," she says. Check out your state regulators site or uphelp.org.

While this case was the first among hundreds of Katrina insurance cases yet to come before this judge, the insurers are clearly the winners here.

But for homeowners who can prove that wind damage was a major factor in their claim, and that the exclusion in their policy is ambiguous, the ruling indicates some wiggle room.

Debra Perkins of the IIABA says insurance companies are likely to take a closer look at the wording of policies to refine their language and make clear what is covered and what isn't.

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