https://www.9news.com/article/news/l...5-ab0872020016

A family whose Greenwood Village home was destroyed by police after an armed suspect took refuge inside it and refused to come out won't get compensation from the city for their losses, according to a ruling from the 10th Circuit Appeals Court.
The ruling also noted that the "innocence of the owner does not factor into the determination."
Please help me understand what is going on here:

Does homeowners insurance cover this?

Are the homeowners screwed or are they trying to double dip from the city and insurance?

Your thoughts and comments?