Allstate loses $2.8 mln hurricane case verdict

(Recasts first paragraph, adds lawyer's comment)

NEW YORK, April 16 (Reuters) - A federal jury ruled against Allstate Corp. (ALL.N) in a "wind versus water" case that awarded a New Orleans area man more than $2.8 million for damage to his home from 2005's Hurricane Katrina.

The verdict included a $1.5 million penalty for the insurer's failure to pay the claim quickly.

"Allstate is shocked with the jury's verdict in favor of the plaintiff and believes it acted in good faith," said Mike Siemienas, a spokesman for Allstate, the largest publicly- traded home insurer in the United States.

Siemienas said the verdict would not impact future lawsuits because it involved issues specific to the customer's claim.

Neither the plaintiff, Robert Weiss, nor his attorney could be reached for comment.

The decision in U.S. District Court in Louisiana comes at a time when cases in another state, Mississippi, appear to be winding down, and settlements are being negotiated there by the state insurance commissioner. A class action settlement in Mississippi fell apart when the judge there was dissatisfied with the terms.

In the Weiss case the insured claimed the winds from the August 2005 hurricane blew his house down. Winds are covered by private insurers, while storm surge is covered by federal flood insurance.

Allstate lawyer Judy Barrasso said there was plenty of evidence to show the winds were not strong enough to topple the house, while the storm surge was.

Weiss claimed Allstate owed him nearly $600,000, but the Northbrook, Illinois insurer said he had already received $350,000 from federal flood insurance and more than $40,000 from the insurer for damage and living expenses. Hurricane Katrina, the most expensive storm in U.S. history, cost insurers more than $38 billion in damages, mostly in Mississippi and Louisiana. Two other storms, Rita and Wilma, brought the damage total for the nation to nearly $70 billion.

((Reporting by Ed Leefeldt, editing by Toni Reinhold; edward.leefeldt@reuters.com; Reuters Messaging: edward.leefeldt.reuters.com@reuters.net +1 646 223 6315)) Keywords: ALLSTATE HURRICANEVERDICT/

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