State Farm is in the final stages of settling more than 600 lawsuits in Mississippi that stem from the destruction caused by 2005′s Hurricane Katrina, according to an article appearing in the New York Times. The newspaper reported that settlements could total up to $80 million, and said other insurers are expected to adopt similar deals.
According to Times reporter Joseph Treaster, the state's largest property insurer will review 35,000 homeowner claims to analyze if claim disbursements should be increased. Because of the difference of factors between Mississippi and Louisiana, however, these claim reviews won't apply to homeowners affected by Katrina in New Orleans and the rest of the state. Claims resulting from the levee breaches in New Orleans still are being litigated in Louisiana.
The Times article went on to report that State Farm, under the tentative accord, would provide an average of about $125,000 to homeowners who filed lawsuits, although the payments would range from as little as about $2,000 to about $2 million.
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