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Allstate Insurance Loses Bad Faith Insurance Claim Ruling

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An Allstate Insurance unit has lost a ruling to dismiss the lawsuit brought by several victims of Hurricane Katrina who allege that their insurance claims were denied in bad faith. Although merely a ruling on a specific part of the case, this may be a harbinger of things to come in the cases of many Hurricane Katrina victims who have water damage to their homes that has not been covered by homeowners insurance.

Allstate loses Katrina ruling

Chicago Tribune - 3/25/2006 6:13 AM

An Allstate Corp. unit on Friday failed to persuade a federal judge to dismiss a lawsuit from Hurricane Katrina victims who said the Northbrook-based insurer unfairly denied their claims. U.S. District Judge L.T. Senter in Jackson, Miss., rejected Allstate's argument that its hurricane coverage excludes water damage and said the case can go to trial. The ruling is the first on the strength of storm victims' suits against insurers that say water damage isn't covered by homeowner's policies, plaintiff's lawyer John Jones said.
 
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