Jury Finds State Farm Defrauded Flood Insurance Program

A federal jury in MIssissippi has found that State Farm Fire and Casualty Co. avoided covering a policyholder’s wind losses by blaming the damage on storm surge, which is covered by federal flood insurance. The verdict came in a whistleblower lawsuit filed against the insurer over its handling of Hurricane Katrina claims. State Farm is expected to appeal. The lawsuit was filed by Cori and Kerri Rigsby of Ocean Springs, Miss., who once worked for Alabama-based E.A. Renfroe, a company State Farm contracted to provide damages assessments after the hurricane.