Insurance Payments
Insurance Payments for Structural/Physical damage to the primary residence and any other or appurtenant structures are included in the Homeowner Assistance Program grant calculation process. Other structure coverage applies primarily to your outdoor structures such as decks and detached car ports. The assignment of these proceeds is authorized by the grant Subrogation Agreement, which is signed by the grant applicant.

Subrogation Agreement
"Subrogation" is the assignment of rights to proceeds for any physical (structural) payments to the primary residence and any other or appurtenant structures not included in the calculation to the Homeowner Assistance Program (HAP) grant award. This agreement is between the applicant and the HAP that is administered by the Mississippi Development Authority (MDA). This is required by a federal law called the Stafford Act, which prohibits the duplication of benefits. According to the Subrogation Agreement, any insurance payments received specifically for physical/structural damage to the primary residence and any other or appurtenant structures shall be promptly remitted to the state. Please refer to the specific Frequently Asked Questions for Phase I concerning the Subrogation process.

Guidance for Payments Received from Insurer for Structural/Physical Damage
Please remit any monetary payments that contain a specific payment breakdown for structural/physical damage received from your insurer, which have not been included in the calculation of your grant award, to the MDA for subrogation analysis. This includes any mediated or arbitrated settlements as well as the proceeds from any litigation you have pursued.

Prior to submitting your check, please ensure that any party, listed as a payee on the face of the check, endorses the check back to the Mississippi Development Authority. If you have incurred legal fees in the course of obtaining your insurance payment, please submit an invoice from the attorney along with your check. Please note that reasonable attorney’s fees negotiated at arms length will be considered in the analysis. Uncompensated damages, as determined in our initial calculation, will be addressed prior to MDA’s assertion of the subrogation interest.

After the analysis has been performed, you will receive correspondence that indicates the results of the analysis. Please submit your insurance proceeds in the form of a properly endorsed insurance company check or a cashier's check to:

Mississippi Development Authority
Attn: Subrogation Department
P.O. Box 66
Clinton, MS 39060-0066

Guidance for Payments Received As A Result of Global Settlement
Some recipients of grants under the Homeowners Assistance Program have negotiated, or are in the process of negotiating, settlements with their insurance companies relating to the handling of damage claims in the aftermath of Hurricane Katrina. We understand that at least some of these settlements are global settlements of all legal causes of action the policy holder filed, or could have filed, against the insurance company, including many claims other than for structural damage to the primary residence and other or appurtenant structure (e.g. contents, loss of use, fraud, bad faith, loss of personal property, breach of contract, equitable estoppel, unjust enrichment, improper certification in/out of flood zone, etc.). Because these global settlements involve claims beyond structural/physical damage and do not include a specific payment breakdown for structural/physical damage, these settlements are not subject to the subrogation agreement. You are not required to remit any monetary payment received from this type of global settlement to the Mississippi Development Authority. However, for settlements that include specific payment breakdown for structural damage MDA will be required by federal law to exercise its subrogation interest and you should follow the instructions set forth above in Guidance for Payments Received from Insurer for Structural/Physical Damage.

If you have entered into a global settlement with your insurance company, please consult with your attorney for an explanation of your obligations under the subrogation agreement. You or your attorney may direct questions and correspondence to:

Mississippi Development Authority
Attn: Subrogation Department
P.O. Box 66
Clinton, MS 39060-0066
1-866-369-6302