A Louisiana state appeals court is weighing whether an insurance company must pay for damage from the failure of levees in New Orleans after Hurricane Katrina, a case that could affect thousands of property owners in the storm-ravaged city. In the case heard Sept. 12 by the 4th Circuit Court of Appeal, Lafayette Insurance Co. says a state judge mistakenly concluded that the company’s policy language was ambiguous and didn’t specifically exclude damage from a levee breach from coverage.