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aamusedinatxNEW YORK (Reuters) - Mississippi Attorney General Jim Hood plans to sue insurance companies to force them to pay for flood damage to homes in the wake of Hurricane Katrina, a source familiar with the matter said Wednesday.
The Democrat attorney general believes that Katrina's horrific winds caused the flooding, said the source, who declined to be named.
Homeowners insurance typically does not cover damage from floods but does pay for damage caused by wind, according to Jim Auden, a Chicago-based analyst with Fitch Ratings.
"(Hood) is calling illegal the provisions that prevent homeowners from getting a claim on their property that was destroyed in the hurricane," the source said.
The attorney general was expected to announce the lawsuit as soon as Thursday morning.
Hood's office is also investigating reports that claims adjusters are offering homeowners an extra $3,000 in living expenses if they sign waivers for flood damage, the source said.
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