A federal jury verdict yesterday in Lousiana requiring Allstate to pay several million dollars it didn't expect to further underlines the inherent problem with our mixed public/private homeowners' insurance system. Allstate has every reason to contend that everything stems from flooding (covered by government) while homeowners, faced with National Flood Insurance Program coverage that has a $350,000 cap, want to have as much non-flood damage as possible. With a house totally destroyed, it's really just guesswork as to who is right. In this situation, private insurance companies have every reason to cut back on coverage. Louisiana's state government was the state's fourth largest property insurer before Katrina. In the wake of this decision, it may well become the largest.