Insurer Sues Miss. Schools Over Wind vs. Water

An insurance company is suing the Bay St. Louis-Waveland, Miss., School District over wind versus water damage related to Hurricane Katrina.

Insurer Cathedral Capital Limited has asked a federal judge to determine its liability under its policy with school district.

The school district contends there was more damage caused by wind than Cathedral wants to pay for through its policy.

School Superintendent Kim Stasny said the school district’s policy with Cathedral is a secondary policy, meaning it pays only after the system’s primary insurance limits are reached.

Stasny said the school district’s primary policy covers claims up to $5 million. He said the Cathedral policy covers about $25 million.

Scott Ellzey, the attorney representing the insurance company, says both parties are continuing to work toward a resolution.