A Mississippi jury has awarded more two and a-half (m) million dollars in punitive damages to a couple who sued an insurance company for denying their claim after Hurricane Katrina.

The decision against State Farm could benefit hundreds of other homeowners, challenging insurers for refusing to cover (b) billions of dollars in storm damage.

The jury verdict comes only hours after a judge ruled that State Farm was liable for more than 223-thousand dollars in damage the storm caused to the couple's Biloxi home.