A total of 699 Gulf Coast homeowners filed suit in federaldistrict court Tuesday claiming that State Farm used a pro-formaengineering report to deny claims stemming from HurricaneKatrina.

The homeowners' suit, filed in U.S. District Court for theSouthern District of Mississippi, alleges the insurer denied manyclaims without investigating whether home damage was caused bywater, and therefore exempt from coverage, or wind, which would becovered.

Last September, Mississippi Attorney General Jim Hood filed asimilar suit in state court asserting that water damage caused bystorm surge was covered under homeowners' policies since it wascaused essentially by wind.

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