Gulf Coast homeowners sue insurance carriers for denied claims

11/8/2006 | National Public Radio (text & audio)

Hundreds of Gulf Coast homeowners are suing insurance companies, saying their claims for damage caused by Hurricane Katrina have been improperly denied. Some insurance companies say much of the damage along the coast was caused by water that came in after the storm. "We don't cover floods," State Farm spokesman Fraser Engerman says. "If the facts show that the cause of the damage was wind or wind-driven rain, such losses will be generally covered. But if the evidence shows it was due to flood or storm surge, that is clearly not covered in the insurance policy."

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