IB 

Union Calendar No. 315 

111TH CONGRESS 

2D SESSION H. R. 1264 

[Report No. 111–551] 

To amend the National Flood Insurance Act of 1968 to provide for the 

national flood insurance program to make available multiperil coverage 

for damage resulting from windstorms or floods, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 3, 2009 

Mr. TAYLOR (for himself, Ms. WATERS, Mr. MELANCON, Mr. SCALISE, Mr. 

CHILDERS, Mr. HASTINGS of Florida, Ms. ROS-LEHTINEN, Ms. JACKSON-LEE of Texas, Mr. BARROW, Mrs. MALONEY, Mrs. CHRISTENSEN, 

Mr. BERRY, Mr. CLEAVER, Mr. COHEN, and Ms. KILPATRICK of Michigan) introduced the following bill; which was referred to the Committee 

on Financial Services 

JULY 19, 2010 

Additional sponsors: Mr. MILLER of Florida, Mr. AL GREEN of Texas, Mr. 

BISHOP of New York, Mr. DAVIS of Alabama, Mr. BONNER, Mr. HARPER, Mr. GRAYSON, and Mr. JONES

JULY 19, 2010 

Committed to the Committee of the Whole House on the State of the Union 

and ordered to be printed 


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A BILL 

To amend the National Flood Insurance Act of 1968 to 

provide for the national flood insurance program to make 

available multiperil coverage for damage resulting from 

windstorms or floods, and for other purposes. 


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1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Multiple Peril Insur5 ance Act of 2009’’. 

6 SEC. 2. COVERAGE FOR WINDSTORMS. 

7 Section 1304 of the National Flood Insurance Act of 

8 1968 (42 U.S.C. 4011) is amended— 

9 (1) by redesignating subsection (c) as sub10 section (d); and 

11 (2) by inserting after subsection (b) the fol12 lowing new subsection: 

13 ‘‘(c) MULTIPERIL COVERAGE FOR DAMAGE FROM

14 FLOOD OR WINDSTORM AND SEPARATE COVERAGE FOR

15 WINDSTORM.— 

16 ‘‘(1) IN GENERAL.—The national flood insur17 ance program established pursuant to subsection (a) 

18 shall enable the purchase of the following coverages: 

19 ‘‘(A) MULTIPERIL COVERAGE.—Optional 

20 insurance against loss resulting from physical 

21 damage to or loss of real property or personal 

22 property related thereto located in the United 

23 States arising from any flood or windstorm, 

24 subject to the limitations in this subsection and 

25 section 1306(b); and 


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1 ‘‘(B) SEPARATE WINDSTORM COVERAGE.— 

2 Optional insurance against loss resulting from 

3 physical damage to or loss of real property or 

4 personal property related thereto located in the 

5 United States arising from any windstorm, sub6 ject to the limitations in this subsection and 

7 section 1306(b). 

8 ‘‘(2) COMMUNITY PARTICIPATION REQUIRE9 MENT.—Multiperil coverage pursuant to paragraph 

10 (1)(A) and windstorm coverage pursuant to para11 graph (1)(B) may not be provided in any area (or 

12 subdivision thereof) unless an appropriate public 

13 body shall have adopted adequate mitigation meas14 ures (with effective enforcement provisions) which 

15 the Director finds are consistent with the criteria for 

16 construction described in the International Code 

17 Council building codes relating to wind mitigation. 

18 ‘‘(3) RELATIONSHIP TO FLOOD INSURANCE

19 COVERAGE.— 

20 ‘‘(A) PROHIBITION AGAINST DUPLICATIVE

21 COVERAGE.—Multiperil coverage pursuant to 

22 paragraph (1)(A) may not be provided with re23 spect to any structure (or the personal property 

24 related thereto) for any period during which 

25 such structure is covered, at any time, by flood 


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1 insurance coverage made available under this 

2 title. 

3 ‘‘(B) REQUIREMENT TO MAINTAIN FLOOD

4 INSURANCE COVERAGE.—Windstorm coverage 

5 pursuant to paragraph (1)(B) may be provided 

6 only with respect to a structure (and the per7 sonal property related thereto) that is covered 

8 by flood insurance coverage made available 

9 under this title and only during the period that 

10 such structure (and personal property) are so 

11 covered. 

12 ‘‘(4) NATURE OF COVERAGE.— 

13 ‘‘(A) MULTIPERIL COVERAGE.—Multiperil 

14 coverage pursuant to paragraph (1)(A) shall— 

15 ‘‘(i) cover losses only from physical 

16 damage resulting from flooding or wind17 storm; and 

18 ‘‘(ii) provide for approval and pay19 ment of claims under such coverage upon 

20 proof that such loss must have resulted 

21 from either windstorm or flooding, but 

22 shall not require for approval and payment 

23 of a claim that the specific cause of the 

24 loss, whether windstorm or flooding, be 

25 distinguished or identified. 


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1 ‘‘(B) SEPARATE WINDSTORM COVERAGE.— 

2 Windstorm coverage pursuant to paragraph 

3 (1)(B) shall— 

4 ‘‘(i) cover losses only from physical 

5 damage resulting from windstorm; and 

6 ‘‘(ii) provide for approval and pay7 ment of claims under such coverage or 

8 under the flood insurance coverage re9 quired to be maintained under paragraph 

10 (3)(B) upon a determination that such loss 

11 from windstorm or flooding, respectively, 

12 but shall not require for approval and pay13 ment of a claim that the insured distin14 guish or identify the specific cause of the 

15 loss, whether windstorm or flooding. 

16 ‘‘(5) ACTUARIAL RATES.—Multiperil coverage 

17 pursuant to paragraph (1)(A) and windstorm cov18 erage pursuant to paragraph (1)(B) shall be made 

19 available for purchase for a property only at charge20 able risk premium rates that, based on consideration 

21 of the risks involved and accepted actuarial prin22 ciples, and including operating costs and allowance 

23 and administrative expenses, are required in order to 

24 make such coverage available on an actuarial basis 

25 for the type and class of properties covered. 


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1 ‘‘(6) TERMS OF COVERAGE.—The Director 

2 shall, after consultation with persons and entities re3 ferred to in section 1306(a), provide by regulation 

4 for the general terms and conditions of insurability 

5 applicable to properties eligible for multiperil cov6 erage pursuant to paragraph (1)(A) and such terms 

7 and conditions applicable to properties eligible for 

8 windstorm coverage pursuant to paragraph (1)(B), 

9 subject to the provisions of this subsection, includ10 ing— 

11 ‘‘(A) the types, classes, and locations of 

12 any such properties which shall be eligible for 

13 such coverages, which shall include residential 

14 and nonresidential properties; 

15 ‘‘(B) subject to paragraph (7), the nature 

16 and limits of loss or damage in any areas (or 

17 subdivisions thereof) which may be covered by 

18 such coverages; 

19 ‘‘(C) the classification, limitation, and re20 jection of any risks which may be advisable; 

21 ‘‘(D) appropriate minimum premiums; 

22 ‘‘(E) appropriate loss deductibles; and 

23 ‘‘(F) any other terms and conditions relat24 ing to insurance coverage or exclusion that may 

25 be necessary to carry out this subsection. 


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1 ‘‘(7) LIMITATIONS ON AMOUNT OF COV2 ERAGE.— 

3 ‘‘(A) MULTIPERIL COVERAGE.—The regu4 lations issued pursuant to paragraph (6) shall 

5 provide that the aggregate liability under 

6 multiperil coverage made available under this 

7 subsection shall not exceed the lesser of the re8 placement cost for covered losses or the fol9 lowing amounts, as applicable: 

10 ‘‘(i) RESIDENTIAL STRUCTURES.—In 

11 the case of residential properties, which 

12 shall include structures containing multiple 

13 dwelling units that are made available for 

14 occupancy by rental (notwithstanding any 

15 treatment or classification of such prop16 erties for purposes of section 1306(b))— 

17 ‘‘(I) for any single-family dwell18 ing, $500,000; 

19 ‘‘(II) for any structure containing 

20 more than one dwelling unit, 

21 $500,000 for each separate dwelling 

22 unit in the structure, which limit, in 

23 the case of such a structure con24 taining multiple dwelling units that 

25 are made available for occupancy by 


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1 rental, shall be applied so as to enable 

2 any insured or applicant for insurance 

3 to receive coverage for the structure 

4 up to a total amount that is equal to 

5 the product of the total number of 

6 such rental dwelling units in such 

7 property and the maximum coverage 

8 limit per dwelling unit specified in 

9 this clause; and 

10 ‘‘(III) $150,000 per dwelling unit 

11 for— 

12 ‘‘(aa) any contents related 

13 to such unit; and 

14 ‘‘(bb) any necessary in15 creases in living expenses in16 curred by the insured when losses 

17 from flooding or windstorm make 

18 the residence unfit to live in. 

19 ‘‘(ii) NONRESIDENTIAL PROP20 ERTIES.—In the case of nonresidential 

21 properties (including church properties)— 

22 ‘‘(I) $1,000,000 for any single 

23 structure; and 

24 ‘‘(II) $750,000 for— 


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1 ‘‘(aa) any contents related 

2 to such structure; and 

3 ‘‘(bb) in the case of any 

4 nonresidential property that is a 

5 business property, any losses re6 sulting from any partial or total 

7 interruption of the insured’s 

8 business caused by damage to, or 

9 loss of, such property from flood10 ing or windstorm, except that for 

11 purposes of such coverage, losses 

12 shall be determined based on the 

13 profits the covered business 

14 would have earned, based on pre15 vious financial records, had the 

16 flood or windstorm not occurred. 

17 ‘‘(B) SEPARATE WINDSTORM COVERAGE.— 

18 The regulations issued pursuant to paragraph 

19 (6) shall provide that windstorm coverage pur20 suant to paragraph (1)(B) for a property shall 

21 not exceed the amount such that the aggregate 

22 liability under flood insurance coverage required 

23 to be maintained under paragraph (3)(B) for 

24 the property and such windstorm coverage for 

25 the property does not exceed the applicable covVerDate Mar 15 2010 00:18 Jul 20, 2010 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1264.RH H1264

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1 erage limit for the property set forth in sub2 paragraph (A) of this paragraph. 

3 ‘‘(8) EFFECTIVE DATE.—This subsection shall 

4 take effect on, and shall apply beginning on, the ex5 piration of the 6-month period that begins on the 

6 date of the enactment of the Multiple Peril Insur7 ance Act of 2009.’’. 

8 SEC. 3. PROHIBITION AGAINST DUPLICATIVE COVERAGE. 

9 The National Flood Insurance Act of 1968 is amend10 ed by inserting after section 1313 (42 U.S.C. 4020) the 

11 following new section: 

12 ‘‘PROHIBITION AGAINST DUPLICATIVE COVERAGE

13 ‘‘SEC. 1314. Flood insurance under this title may not 

14 be provided with respect to any structure (or the personal 

15 property related thereto) for any period during which such 

16 structure is covered, at any time, by multiperil insurance 

17 coverage made available pursuant to section 

18 1304(c)(1)(A).’’. 

19 SEC. 4. COMPLIANCE WITH STATE AND LOCAL LAW. 

20 Section 1316 of the National Flood Insurance Act of 

21 1968 (42 U.S.C. 4023) is amended— 

22 (1) by inserting ‘‘(a) FLOOD PROTECTION

23 MEASURES.—’’ before ‘‘No new’’; and 

24 (2) by adding at the end the following new sub25 section: 


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1 ‘‘(b) WINDSTORM PROTECTION MEASURES.—No new 

2 multiperil coverage shall be provided under section 

3 1304(c) for any property that the Director finds has been 

4 declared by a duly constituted State or local zoning au5 thority, or other authorized public body to be in violation 

6 of State or local laws, regulations, or ordinances, which 

7 are intended to reduce damage caused by windstorms.’’. 

8 SEC. 5. CRITERIA FOR LAND MANAGEMENT AND USE. 

9 Section 1361 of the National Flood Insurance Act of 

10 1968 (42 U.S.C. 4102) is amended by adding at the end 

11 the following new subsection: 

12 ‘‘(d) WINDSTORMS.— 

13 ‘‘(1) STUDIES AND INVESTIGATIONS.—The Di14 rector shall carry out studies and investigations 

15 under this section to determine appropriate meas16 ures in wind events as to wind hazard prevention, 

17 and may enter into contracts, agreements, and other 

18 appropriate arrangements to carry out such activi19 ties. Such studies and investigations shall include 

20 laws, regulations, and ordinance relating to the or21 derly development and use of areas subject to dam22 age from windstorm risks, and zoning building 

23 codes, building permits, and subdivision and other 

24 building restrictions for such areas. 


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1 ‘‘(2) COORDINATION WITH STATE AND LOCAL

2 GOVERNMENTS.—The Director shall work closely 

3 with and provide any necessary technical assistance 

4 to State, interstate, and local governmental agencies, 

5 to encourage the application of measures identified 

6 pursuant to paragraph (1) and the adoption and en7 forcement of such measures.’’. 

8 SEC. 6. DEFINITIONS. 

9 Section 1370 of the National Flood Insurance Act of 

10 1968 (42 U.S.C. 4121) is amended— 

11 (1) in paragraph (14), by striking ‘‘and’’ at the 

12 end; 

13 (2) in paragraph (15) by striking the period at 

14 the end and inserting ‘‘; and’’; and 

15 (3) by adding at the end the following new 

16 paragraph: 

17 ‘‘(16) the term ‘windstorm’ means any hurri18 cane, tornado, cyclone, typhoon, or other wind 

19 event.’’. 


smartinez on DSKB9S0YB1PROD with BILLS
Union Calendar No. 315 

111TH CONGRESS 

2D SESSION H. R. 1264 

[Report No. 111–551] 

A BILL 

To amend the National Flood Insurance Act of 

and for other purposes. for damage resulting from windstorms or floods, program to make available multiperil coverage 1968 to provide for the national flood insurance 

JULY 19, 2010 

Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 


smartinez on DSKB9S0YB1PROD with BILLS