As previously reported (click here ) mediation will be made available to homeowners that dispute the insurance settlements being offered.

A report in the Sun Herald (MS) discusses the commencement of the program and potential issues.

Hurricane mediation program begins Friday

Don't expect wind vs. water issue to be resolved

A mediation program kicks off Friday to resolve Hurricane Katrina insurance claims, but homeowners with disputes over the cause of damage - wind vs. water - likely will be disappointed.

Insurance mediation has focused on disagreements over the cost of repairs, not the cause of damage, said India Johnson, a senior vice president of the American Arbitration Association, which is administering mediation programs for Mississippi and Louisiana.

"We don't want to discourage people, but if it's a total black-and white dispute about what's covered under the policy, and (the two sides are) way apart, I don't know if they're the ones who should rush into this program," Johnson said.

In thousands of cases, insurance companies say water, excluded from coverage, damaged homes while homeowners maintain that wind, which is covered, caused the destruction. Some policies even purport to exclude wind damage when water was a contributing cause.

Thousands of homeowners have filed lawsuits to resolve their claims and are ineligible for mediation.

However, Johnson said mediation is free to the homeowner and could be worth a try for those who want to avoid a court battle. She said mediation will be most helpful in cases where insurers and the insured disagree over the settlement amount.

Trained mediators, attorneys licensed in Mississippi, work with the homeowner and insurance company to reach a settlement.

Insurance companies pay the Arbitration Association for mediation; the association then pays the mediators.

Homeowners who want to mediate claims should gather all records regarding their insurance claims, including letters and repair estimates. They also can bring along a structural engineer or other expert to shed light on their claim.

Beginning today, insurance companies must notify customers who file claims that mediation is available. For Katrina claims already filed, insurance companies must mail notices about mediation by Jan. 20. The insured can request mediation 10 days after receiving the notice.

The Arbitration Association expects mediation to take about two hours.

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

Hurricane mediation program begins Friday