State Farm owes $2.5 million in Katrina case

Friday, January 12, 2007

GULFPORT, Miss. -- A jury awarded $2.5 million in punitive damages against State Farm Fire and Casualty Co. for a Mississippi couple for denying their Hurricane Katrina claim. The decision could benefit hundreds of other homeowners challenging insurers for refusing to cover billions of dollars in storm damage. State Farm said it will likely appeal. Earlier Thursday, U.S. District Judge L.T. Senter Jr. had taken part of the case out of jurors' hands before they awarded punitive damages to State Farm policyholders Norman and Genevieve Broussard of Biloxi. Senter ruled Thursday morning that State Farm is liable for $223,292 in damage caused by Hurricane Katrina to the Broussards' home. Senter left the punitive damages to the jury.

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