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Mississippi Couple Sues State Farm Over Katrina Damage

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A Mississippi couple is suing State Farm Insurance Co. for denying their claim after their home was destroyed by Hurricane Katrina.
 
It is one of many disputes over whether the home was destroyed by wind (covered by insurance) or flood water (not covered).
 
In this case, two conflicting engineering reports surfaced and the insurance company acted on the one that suggested flooding was the culprit.
 
The couple maintains that State Farm should not be able to choose whichever documents support their side.

Suit accuses State Farm of fraud

Jackson Clarion Ledger - 3/23/2006 6:19 AM

The first report, dated Oct. 23, found the couple's two-story home in Kiln, a rural community near the Mississippi-Louisiana border, was destroyed by hurricane-force wind, damage their policy covered. On Jan. 3, however, the firm issued a second report that blamed the damage on the storm's flood waters.
 
State Farm used the second report as the basis for denying the Mullins' claim. Insurance companies say their homeowners' policies do not cover damage from rising water, including wind-driven water, but policyholders argue that storm surge should not be cons
 
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