BATON ROUGE - Insurance companies should not list the state of Louisiana on loss payments for damage caused by hurricanes Gustav and Ike to homeowners in the Road Home program.

As part of covenants for the Road Home program, homeowners participating in the program are required to maintain homeowners and flood insurance on their rebuilt property. To monitor these covenants, the state requires homeowners do one of the following things:

• Name the state as an additional insured for the limited purpose of notice of issuance and cancellation of the policy;
• Name the state as an "interested party" for the limited purpose of notice of issuance and cancellation of the policy; or
• Have a certificate of insurance issued to the State.

Even though the state of Louisiana is listed as an additional insured on some policies, the state is not a "loss payee" and should NOT be named on checks to homeowners for damages unrelated to hurricanes Katrina and Rita.

Further, the state will not be taking a portion off insurance payments for Gustav and Ike from homeowners using Road Home funds to rebuild their homes after hurricanes Katrina and Rita.

For the Road Home program to comply with the federal prohibition of duplication of benefits the state is involved with settlement payments from insurance companies to Road Home grant recipients for damages caused by hurricanes Katrina and Rita. That process does not apply to insurance payments now being made for losses from hurricanes Gustav and Ike.