On September 28, 2007, a jury in an action venued in the United States District Court, Southern District of Mississippi, found that certain damage to the home of Kevin and Sherrye Webster was caused by wind, wind-blown debris and/or wind-driven rain, which were all covered perils under the Websters’ homeowners’ policy. The Websters’ suit against their insurer then settled before the damages phase of the trial. Terms of the settlement have not been disclosed.

The Websters had purchased a homeowners’ policy for their home in Mississippi that provided coverage for the dwelling in the amount of $811,000 and for contents coverage in the amount of $760,480. Other coverage was also purchased, including loss of use coverage. The Websters sustained a total loss of their property and contents as a result of Katrina.

The Websters’ insurer denied the majority of the Websters’ claim on the basis that such damage was largely caused by flooding. It offered $10,944.16 for all damage sustained to the property and contents. The Websters filed suit alleging bad faith and seeking a declaration that all damage was covered under their homeowner’s policy. A copy of the amended complaint can be accessed here.

We will continue to monitor Katrina-related developments and provide updates at InsureReinsure.com.