Katrina Insurance Trial Begins in Miss.

Asked if the agent had explained why he did not need flood insurance, Leonard responded: "No, sir. I always had a hurricane policy. Why would I need flood on top of hurricane (coverage)?"

The first floor of the Leonard home received 5 feet of water during the hurricane, forcing the family to live on the second floor during repairs. Leonard said he has spent $30,000 of his own money on repairs, clothing and other needs since Katrina.

Zach Scruggs said weather data shows Katrina's 140 mph wind hit the Mississippi coast three hours before any storm surge flooding. He said Nationwide's experts ignored that evidence and wrongly blamed water for the vast majority of the damage to the Leonards' house.

Attridge said Nationwide has paid out $230 million for 21,000 claims in Mississippi since Katrina and an additional $220 million for its handling of 1,800 flood insurance claims under the National Flood Insurance Program.

Richard Scruggs said it was too early to discuss the case's effect on other claims.

"A journey of a thousand miles begins with one step, and this is the first step," he said. "It's one case. If you win it, it's a huge win. If you lose it, you spin it the best way you can."

Nationwide spokesman Joe Case said the company looks "at each claim on a case-by-case basis."

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