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If a tort (3rd party negligence) comes into play (the levy board, city of NO, state of LA, Corp of engineers{US}, many engineers and contractors for faulty design and construction failure, you should have known, you were aware; as the theory of liability, which may be proven. The all risk of loss (may  be triggered). The carriers with this coverage would be drug into the fray, the payments would bankrupt all the carriers for first party claims, if/when made.

My crystal balls says the local, state, contractors & engineers insurance coverage will cover less than 1% of the cost of the damages and under joint and several  liability insurance with the Louisiana statues only the USA treasure can pay the claims; therefore the USA will step in and save the Insurance carriers just like they did in the World Trade Center Twin Tower and the existing terrorism Coverage on buildings today.

Won’t these cases for the most part just disappear when the lawyers find the “next” big case? Isabel was to bring a ton of law suits but where did that go? Is this just going to be much ado about nothing in the end? By the way it looks like we are now talking about Allstate and not State Farm.

Is the FEMA program "Come back Home"  NOLA still under the media rader or was it a non starter as it was for the "people". I never read a published program outline but last fall an adjuster who was staying over to work for the vendor who was hired gave an outline as follows. The max amount is $250,000. on buildings or property in them that you own that was destroyed by any cause from Catrina ,would be a grant. Any insurance payments below the max. of 250K would be an offset.  If you had a loss in excess of 250 K you could collect up to the limit not offset. Example loss was 501 K thousand, insurance was 250 K, come back $250 K. Loss $300 K insurance none come back 250 K. Loss 100K insurance 50K come back $50K.

Does this not sound like the private insurance sector will be as involved in future stoms. I do agree the Fed should be the  100 %re-insuror on terrorism property damage, but if the citizen,s are worth 1 million each dead as in  9-11 we will have to dig deep next time.

Here is the link to the State Farm press release dated 1/23/07 from State Farm's website providing much greater details on the intended procedure for handling the cases to be settled in 3 MS counties:

http://www.statefarm.com/about/media/media_releases/scruggs_katrina.asp