According to an article appearing in Mississippi's Sun Herald newspaper, the state's Attorney General Jim Hood expressed dissent over a ruling by a federal judge that said insurance companies could use a water exclusion to deny coverage for Hurricane Katrina's storm surge.

Reporter Anita Lee wrote that Hood is eager to take his lawsuit against insurers to state court, where he believes a judge will agree the exclusion is invalid and policyholders should be compensated for all hurricane damage under their homeowner policies. The case was removed from federal court earlier this year and sent back to Mississippi's state court to be heard.

Lee also wrote that insurers maintain the water exclusion has been applied for years and upheld by state courts. They say they should not be expected to pay for damage they collected no premiums to cover. Instead, they said, the National Flood Insurance Program covers storm surge while private policies cover only wind damage.

According to the article, more than 1,000 lawsuits filed by policyholders against their insurance companies are pending in U.S. District Court in Gulfport, Miss. Lee also reported that Hood expects a grand jury investigation looking into post-Katrina claim practices to take action by January. For more information about the background in this case, click here.

For the complete Sun Herald article, please click here: http://www.sunherald.com/mld/sunherald/news/local/16034169.htm.

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Mississippi Attorney General Speaks Out Again

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