Byline: Travis E. Poling
Oct. 2--USAA's loss in a jury trial last week in Mississippi on a Hurricane Katrina claim has plaintiffs' lawyers and insurance industry observers debating the results and the cost of other post-Katrina litigation.
At issue in virtually all the cases is if damage came from floodwaters brought by a 26-foot-high storm surge and how much damage wind had caused before the water hit. Insurance companies cover wind damage but don't cover property destruction by flood.
In the long run, said Robert Hartwig, president of the Insurance Information Institute, the litigation will squeeze consumers. Companies already are limiting their policies along ...