[StBernard] Krunch Time For Katrina Claims Against Insurers

[Westley Annis]

Wendy, this is true to my understanding as well--LRA payment minus
structural portion of insurances payoff = Net payout from LRA.

--JER--

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Westley,

Actually, homeowner's insurance claim payments do affect your LRA.  The
amount you receive from your homeowner's insurance as well as your flood
insurance money is subtracted directly from the total value of your home
(damage).  For example, if you received a homeowner's insurance payment in
the amount of $50,000 and your property was valued at $200,000, then the
$50,000 would be subtracted and you would receive a LRA grant in the amount
of $150,000 (which is the max).  Now this doesn't include the penalty of 30%
for not carrying homeowner's insurance or flood insurance if you were in a
flood zone.  If you receive additional money from your insurance company
after closing on your LRA grant, you are supposed to notify LRA of the
additional insurance money received (only structure damage - don't include
payments made on claims for content damage).  In addition, if you receive
any FEMA money for damage to your structure, you are supposed to notify LRA
as well (the max that FEMA 
 pays for damage to a structure is only something like $4,800 or $5,200).
So, basically, any additional money received from insurance claims (damage
payments only - not contents) is supposed to be reported to LRA.  It is
stipulated in the LRA closing documents.  I hope this helps.

Wendy