According to State Farm, it was a case of a satisfied customer mistakenly portrayed by ABC News. 

In its statement in response to our 20/20 report on allegations that the company had wrongly denied homeowners' claims, State Farm says that one claim we highlighted "belongs to a Biloxi, Miss., policyholder who, despite ABC's and two external independent claims adjusters' assertions, did receive payment and has declared that he is satisfied with his payment and the way his claims were handled by State Farm."

What State Farm did not reveal is that the homeowner's statement was in reaction to a second, rewritten engineering report shown to him by a company lawyer.  That report, dated Oct. 20, 2005, concluded that despite some wind damage, the "damage to the first floor walls and floors appears to be predominately caused by rising water from the storm surge and waves."  Wind damage is covered by State Farm, but water damage is not -- so the homeowner was only able to collect a limited amount for his claim.      

However, the homeowner says State Farm had never shown him the first engineering report about his property damage, dated Oct. 12, 2005.  The report, prepared by the same independent engineering firm, contained no mention of water damage, and concluded that "the interior damage of the structure is primarily the result of the failure of the windows, walls and doors due to wind."   

The homeowner reached his resolution with State Farm and signed a letter declaring his satisfaction with the result without ever seeing or knowing of the first report.  He first learned of it last week when ABC News sent him a copy of the report.  The homeowner, who asked not to be identified, told ABC News that he is now not a satisfied customer and that the statement he had given to State Farm was based solely on his reaction to the later report, without knowing of the first.   

As we reported, the copy of the first report obtained by ABC News included the image of an attached note stating, "Put in wind file - do not pay bill - do not discuss."  The whereabouts of the original report is a mystery; State Farm has confirmed to ABC News that, despite an extensive check of its files, it only has possession of the second report. 

As of Tuesday, Aug. 29, 2006, evening...

At State Farm's request, ABC News has faxed a copy of the first engineering report to the company.  A State Farm official says the company will investigate why the original of the document is missing from its files.