Insurance Lawsuit Update

By: Wendy Suares
By: Wendy Suares

A federal judge recently sent the case of the state of Mississippi versus insurance companies back to state court.

Attorney General Jim Hood sued, saying insurance companies have wrongly denied claims filed by policy holders for damage caused by Hurricane Katrina.

Now Allstate and State Farm are asking the judge to reconsider.

Hood says this is insurance companies' latest attempt to delay an outcome.

"My point is if the insurance companies are so confident in their exclusionary provisions, then why don't they meet me in court? We should have been in court here in September and at least had those people on the coast a decision," said Hood.

Hood filed the suit in September. It would make insurance companies pay for damage caused by storm surge during Katrina.

The companies argue their policies do not cover water damage, and the homeowners should have purchased flood insurance.


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