Katrina Coverage Verdict Shocks Allstate

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Allstate Insurance Co. says it is “shocked” by yesterday’s $2.8 million verdict on behalf of a Louisiana man whose home was destroyed by Hurricane Katrina.

Allstate spokeswoman Kate Hollcraft says an appeal is planned, according to a story based on reports from the Associated Press and the staff of the New Orleans Times-Picayune.

“Allstate is shocked with the jury verdict in favor of the plaintiff. Allstate believes it acted in good faith throughout the entire claims process,” she said.

The recovery goes to Robert Weiss, who had claimed the company did not pay him enough for wind damage. Allstate had claimed most of the damage was due to storm surge, which was not covered by its policy.

The jury foreman said jurors didn’t think Allstate acted in good faith because of evidence it relied on an assessment of wind and flood damage by an engineer who did not visit the home site until after he wrote a report.

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