In the aftermath of Hurricane Katrina, the insurance industry may face disputes with homeowners over whether they have legitimate wind damage claims, a trade association claims specialist predicted.

Don Griffin, vice president for personal lines for the Property Casualty Insurers Association of America, noted that both Louisiana and Mississippi have so-called "valued policy" laws that could require carriers to pay full replacement value of totaled property even if part of the damage is caused by flooding, which is a risk not generally covered by home policies.

Mr. Griffin said that laws state that "in the event of a total loss you have to write a check for the full amount."

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