Posted On: July 11, 2007, 2:10 pm CDT

Posted By: We finally got a little relief

We finally got a little relief," Denton said. "We're pleased that we were able to get our current State Farm cases resolved. What it indicates to me is that we have finally reached some middle ground with State Farm that has created a basis on which we can settle our State Farm cases."

More than 200 lawsuits are pending against the insurer in U.S. District Court. Evidence unearthed so far indicates State Farm denied payments for wind damage in coastal areas also subjected to storm surge. State Farm relied on a clause in its policies that purports to say wind damage is not covered when water contributes.

Under pressure from state officials, and with an unfavorable court ruling early in the year, the insurer is now re-evaluating claims and offering wind-damage payments to policyholders whose property the storm swept away, leaving only slabs or pilings. The insurer also will review the claims of other Coast policyholders who request it.

State Farm, the state and nation's largest property insurer, has about 35,000 customers in the three Coast counties. The company has paid more than $1.2 billion for hurricane damage statewide.

Its claims re-evaluation process is being overseen by Insurance Commissioner George Dale, whose office, because of consumer complaints, is investigating how the insurer handled Katrina claims.