We have previously reported on a number of potential lawsuits regarding insurance coverage in the aftermath of Hurricane Katrina and Rita. ( Click here )

In addition, we have reported on the ongoing debate whether property damage was caused by "wind" versus "water" and how that would impact the insurance coverage. ( Click here )

A recent report in the Sun Herald (MS) discusses a class-action lawsuit being filed on behalf of homeowners with "all risk" policies but were denied insurance coverage.

Lawsuit seeks order requiring insurance firm pay off for certain Katrina damages

GULFPORT, Miss. - State Farm Fire and Casualty Co. is being sued by a Biloxi attorney and all other Mississippi Gulf Coast residents who had "all risk" homeowner policies but are being denied coverage for Katrina damages.

Attorney Richard T. Phillips of Batesville, an experienced litigator against insurance companies, filed the class-action lawsuit in federal court in Gulfport.

The lawsuit contends State Farm is obligated to fully cover the loss of Biloxi attorney Judy Guice's home in Ocean Springs during the Aug. 29 storm. Hurricane losses of other Coast homeowners with all perils policies from State Farm also should be covered, according to the lawsuit.

State Farm denied Guice coverage under her homeowner's policy, citing an exclusion for water damage that includes tidal surge.

State Farm should pay up because, the way the policy is worded, all damage is covered unless it would have occurred only as a result of the tidal surge, Guice contends.

Wind damage is a covered peril and, since it contributed to the damage, the policy should be paid in full, the lawsuit contends.

The action asks that a federal judge interpret the policy and order State Farm to follow the ruling.

The court must first decide whether the case should be classified as a class-action lawsuit, which would include other Coast homeowners with the same policy.

To view the online report please click on the following link:

Lawsuit seeks order requiring insurance firm pay off for certain Katrina damages