State Farm to resolve Katrina claims

State Farm will participate in a court supervised resolution process to reconsider and fully resolve claims from Hurricane Katrina in three Mississippi coastal counties, according to a press release.The process is part of an agreement reached through the settlement of a class action lawsuit against the insurer by families who believe their damage claims were not adequately resolved. This agreement can affect some 35,000 Mississippi families, if approved by the U.S. District Court in Mississippi overseeing hurricane litigation.The agreement is the result of lengthy negotiations between State Farm, the largest property insurer in the state, and the Scruggs Katrina group legal team consisting of Mississippi attorneys).U.S. District Judge L.T. Senter, Jr., who is presiding over hurricane litigation, has been asked to give preliminary approval to the settlement plan.”This agreement can bring prompt and fair relief to residents of the three coastal counties who filed a claim with State Farm,” said attorney Richard Scruggs of the Scruggs Katrina Group. “Thousands of families now have a second chance to have their claims reopened and receive money to rebuild,” added Don Barrett, an attorney also involved in the negotiations. The process applies to State Farm policyholders including homeowners, renters and owners of business properties in Hancock, Harrison, and Jackson counties, who experienced property damage as a result of Hurricane Katrina. These policyholders will have an opportunity to have their cases reconsidered and receive speedy payment for losses under the court-supervised program. If, after filing a settlement form and receiving an offer from State Farm under this resolution process, policyholders are not satisfied and reject the offer, they can request arbitration, which unlike mediation is binding and is not subject to appeal for both State Farm and the policyholder. Homeowners will have the opportunity to decide if they wish to participate in this class settlement.