Trial Set in Suit Over Katrina Claims

[Omaha Steve]

Source: Associated Press

Trial Set in Suit Over Katrina Claims

Sunday April 8, 6:22 PM EDT

NEW ORLEANS (AP) — Allstate Insurance Co. policyholders Robert and Merryl Weiss blame Katrina's winds and possibly a storm-spawned tornado for demolishing their Slidell home. But the Northbrook, Ill.-based company concluded that the hurricane's storm surge was responsible for most of the damage.

Allstate and other insurers say their policies cover a hurricane's wind but not its rising water. Hundreds of homeowners in Louisiana and Mississippi have sued their insurers for refusing to cover billions of dollars in damage from Katrina's storm surge.

Jury selection starts Monday in the trial of the Weisses' lawsuit, only the second Katrina insurance case to be tried so far in a federal court. They had a federal flood insurance policy and a separate Allstate homeowner's policy with limits of $343,000 for the dwelling and $240,100 for personal property.

Allstate paid the Weisses $350,000 for coverage under their flood policy but only $29,483 for structural damage to their home and $14,787 for additional living expenses under their homeowner policy.

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