State Farm loses $2.5 million Katrina decision--Mississippi couple who lost home awarded punitive damages
Despite all the speculation, I don't think one jury trial in a single federal District Court is going to be the end of this coverage issue. State Farm and other insurers have gazillions at stake here. Still, it is good news for a lot of homeowners:

GULFPORT, Miss. - A jury on Thursday awarded $2.5 million in punitive damages to a couple who sued Bloomington-based State Farm Fire and Casualty Co. for denying their claim after Hurricane Katrina, a decision that could benefit hundreds of other homeowners challenging insurers for refusing to cover billions of dollars in storm damage.