Louisiana officials are looking to insurers to help them bring Louisiana residents displaced by Hurricane Katrina back to their homes.

The program, known as the Road Home, is designed to lure residents back to Louisiana by compensating those eligible up to $150,000 for their hurricane related losses. Any insurance payments made to these homeowners, however, would be subtracted from the $150,000, with the exception of contents coverage.

The payment reduction is in accordance with federal regulations, as the program is federally funded by the Department of Housing and Urban Development.

As part of the program, Louisiana Governor Kathleen Babineaux Blanco and insurance commissioner Jim Donelon have been seeking to work with insurers. The Road Home program needs to verify insurance policyholder data in order to properly determine the payments for homeowners and, as part of the effort, Gov. Babineaux Blanco and Commissioner Donelon have asked that companies designate a specific contact person to work with the program.

In a memo to insurers, the two noted that "insurance policyholder data verification is a critical component that will allow the Road Home program to accomplish its ultimate mission of calculating and distributing financial assistance to the affected Louisiana residents." Additionally, the two asked that any insurers who have not established their contact for the program do so immediately.

Under the Road Home program, homeowners are not directly paid, but the funds are instead deposited in a disbursement account for financial needs as they arise. Moreover , those homeowners who receive payment are required to sign an agreement saying that they will stay for at least three years.

Created by Gov. Blanco, the Louisiana Recovery Authority, and the Office of Community Development, the Road Home program is the largest housing program in U.S. history. As of November 21, the Road Home Program said it has received almost 80,000 applications. At that time, more than 7,000 awards had been calculated, with all information verified. The average payment was $63,741.

This article originally appeared in The National Underwriter P&C. For the complete article, please click here.

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