Mississippi sues insurers for flood-damage funds

JACKSON, Miss. (AP) — Mississippi on Thursday sued insurers to force them to pay billions of dollars in flood damage from Hurricane Katrina, saying standard insurance polices have led homeowners to believe they are covered for all hurricane damage, whether from high winds or storm surges.

To deny coverage to those whose homes were wiped out by the storm surge, but lacked flood insurance, is "taking advantage of people in the most dire straits," said Attorney General Jim Hood, who filed the lawsuit.

"We intend to . . . make sure the insurance companies pay all that they owe these people on the coast," he said.

Hood said storm surge damage has been estimated at $2 billion to $4 billion.