NU Online News Service, Aug. 5, 3:56 p.m.EDT

Half of Consumer Reports' readers who filed insuranceclaims resulting from Hurricane Katrina in 2005 said they hadproblems with their insurer, the magazine reported.

In the September issue of the consumer watchdog's magazine, theorganization says 26 percent of its readers also complained thatthey were paid too little for their claims.

"A disaster tests everyone, and in the eyes of our readersinsures often failed that test," the magazine said.

The magazine's readers did have high praise for threeinsurers--Amica Mutual Group, USAA Group and the Chubb Group.

Readers said they were dissatisfied with the service of largeinsurers and delays in claims payments were a common complaint.

People with good credit scores and claims history received morefavorable treatment from insurers than those with poor creditscores and claims history, the article said.

The vast majority of consumers, however, are content with theirhomeowners coverage, Consumer Reports found.

Responding to the article, Loretta L. Worters, spokeswoman forthe Insurance Information Institute, said the report is typical ofwhat the magazine writes, with an emphasis on the negative despitesome positive news that they downplayed.

She called the survey narrow because it only reflects theopinions of Consumer Reports' readers.

"It is not a reflection of policyholders as a group," shesaid.

Ms. Worters praised a video that accompanied the online articleadvising consumers that they need to purchase flood insurance toprotect their home and property. However, she said the organizationshould have mentioned that excess flood policies are available forconsumers whose homes are worth more than the maximum the floodprogram covers.

The article and video are available at www.consumerreports.org andclicking on Consumer Reports Magazine.