Allstate Insurance Settles Katrina Lawsuit After Million Dollar Verdict
The Associated Press reports that, rather than filing an appeal, Allstate Insurance has settled with a hurricane Katrina victim who was awarded a $2.8 million verdict. Robert Weiss won a verdict for Allstate’s failure to adequately pay him for wind damage to his home. Allstate had argued that most to the damage was due to the storm surge, which was not covered by his policy. Terms of the settlement were not disclosed, but were probably lower than the jury’s verdict.
Flood insurance must by purchased separate from a homeowner’s policy. Most insurance companies doing business in the New Orleans area have claimed that water damage from the hurricane is not covered by the policies they issued. Weiss’ was one of the first of hundreds of lawsuits against insurance providers to be decided.
An Allstate spokesman said “The jury’s verdict in this case is clearly the product of passion and prejudice and is not supported by the evidence.” He added that the jury’s award exceeded the limits of Weiss’ policy. The jury concluded that Allstate owed Weiss $561,600 for wind damage to his home, plus another $2.25 million in damages for failing to pay his claim in a reasonable time.
