Claims may court disaster

Scott Miller
Pantagraph.com

BLOOMINGTON -- Some Hurricane Katrina claims may be handled by attorneys rather than claims adjusters. As homeowners and businesses begin to rebuild, court battles could be shaping up to determine whether private companies like State Farm Insurance Cos. or the federal government are responsible for paying flood claims in devastated areas of Louisiana and Mississippi -- and the extent of their liability.

The lawsuits would likely be modeled after similar court challenges in the wake of Florida's 2004 hurricanes. "I'm hopeful we won't wind up with tremendous litigation, but there's always going to be some litigation in catastrophes of this magnitude," said Robert Hartwig, chief economist with the Insurance Information Institute in New York.

Source: http://www.pantagraph.com/stories/091505/bus_20050915003.shtml