David L. Raybin, a criminal defense attorney in Nashville with the law firm Hollins, Raybin & Weissman P.C., said his firm is currently investigating in excess of 50 claims that insurance agents failed to properly advise customers about flood insurance for their homes.

“For many people, their agents did the right thing and they are very happy with them,” said Mr. Raybin. “But there are a minority of cases where they did not, and that is what we are going after.”

He said the cases involve both independent agents and “big box” or direct writing agents. For the direct writers especially, he said a major question is whether they were properly trained.

There is also an issue with mortgage companies that required homeowners to purchase flood insurance for the structure but failed to inform homeowners that the insurance did not cover contents, he noted.

The Insurors of Tennessee–an independent agent association–has gotten in the middle of the controversy with a letter sent to members advising them not to admit any wrongdoing if a customer asks why they weren't covered for flood. The letter advised agents to consult with their errors and omissions carrier before responding to any allegations.

Ashley Arnold, general counsel for the association, said the letter was only part of a series of pieces of information the group sent to members advising them on how to handle this crisis. She said the destruction was widespread, noting that one office had 1,000 claims in a matter of days.

“Nothing like this has ever happened before,” she said. “It just doesn't exist.”

While controversy swirls over flood coverage, she said what has been overlooked is the fact that agents were among the first going out to their customers' homes, helping with the cleanup, filing claims and getting temporary housing.

“None of our members were looking for the 15 minutes of fame while they were doing their jobs,” she said.

Mr. Raybin said he is hopeful that whatever cases are brought will avoid litigation and that settlements can be reached with the agents' E&O carriers.

No matter the merits of the case, however, Randy Maniloff, an attorney for the law firm White & Williams in Philadelphia, which handles litigation for insurance companies, said that if the claims do end up going to trial, due to the extent of damage judges may feel pressure to find liability against agents because they know there are E&O policies backing them up.

However, because of the sheer number of potential claims, he warned that the limits on these policies could be exhausted “very quickly.”