I 

111TH CONGRESS 

1ST SESSION H. R. 1264 

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 

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. 

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’’. 


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1 SEC. 2. COVERAGE FOR WINDSTORMS. 

2 Section 1304 of the National Flood Insurance Act of 

3 1968 (42 U.S.C. 4011) is amended— 

4 (1) by redesignating subsection (c) as sub5 section (d); and 

6 (2) by inserting after subsection (b) the fol7 lowing new subsection: 

8 ‘‘(c) MULTIPERIL COVERAGE FOR DAMAGE FROM

9 FLOOD OR WINDSTORM AND SEPARATE COVERAGE FOR

10 WINDSTORM.— 

11 ‘‘(1) IN GENERAL.—The national flood insur12 ance program established pursuant to subsection (a) 

13 shall enable the purchase of the following coverages: 

14 ‘‘(A) MULTIPERIL COVERAGE.—Optional 

15 insurance against loss resulting from physical 

16 damage to or loss of real property or personal 

17 property related thereto located in the United 

18 States arising from any flood or windstorm, 

19 subject to the limitations in this subsection and 

20 section 1306(b); and 

21 ‘‘(B) SEPARATE WINDSTORM COVERAGE.— 

22 Optional insurance against loss resulting from 

23 physical damage to or loss of real property or 

24 personal property related thereto located in the 

25 United States arising from any windstorm, subVerDate Nov 24 2008 03:16 Mar 05, 2009 Jkt 079200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1264.IH H1264

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1 ject to the limitations in this subsection and 

2 section 1306(b). 

3 ‘‘(2) COMMUNITY PARTICIPATION REQUIRE4 MENT.—Multiperil coverage pursuant to paragraph 

5 (1)(A) and windstorm coverage pursuant to para6 graph (1)(B) may not be provided in any area (or 

7 subdivision thereof) unless an appropriate public 

8 body shall have adopted adequate mitigation meas9 ures (with effective enforcement provisions) which 

10 the Director finds are consistent with the criteria for 

11 construction described in the International Code 

12 Council building codes relating to wind mitigation. 

13 ‘‘(3) RELATIONSHIP TO FLOOD INSURANCE

14 COVERAGE.— 

15 ‘‘(A) PROHIBITION AGAINST DUPLICATIVE

16 COVERAGE.—Multiperil coverage pursuant to 

17 paragraph (1)(A) may not be provided with re18 spect to any structure (or the personal property 

19 related thereto) for any period during which 

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

21 insurance coverage made available under this 

22 title. 

23 ‘‘(B) REQUIREMENT TO MAINTAIN FLOOD

24 INSURANCE COVERAGE.—Windstorm coverage 

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


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1 only with respect to a structure (and the per2 sonal property related thereto) that is covered 

3 by flood insurance coverage made available 

4 under this title and only during the period that 

5 such structure (and personal property) are so 

6 covered. 

7 ‘‘(4) NATURE OF COVERAGE.— 

8 ‘‘(A) MULTIPERIL COVERAGE.—Multiperil 

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

10 ‘‘(i) cover losses only from physical 

11 damage resulting from flooding or wind12 storm; and 

13 ‘‘(ii) provide for approval and pay14 ment of claims under such coverage upon 

15 proof that such loss must have resulted 

16 from either windstorm or flooding, but 

17 shall not require for approval and payment 

18 of a claim that the specific cause of the 

19 loss, whether windstorm or flooding, be 

20 distinguished or identified. 

21 ‘‘(B) SEPARATE WINDSTORM COVERAGE.— 

22 Windstorm coverage pursuant to paragraph 

23 (1)(B) shall— 

24 ‘‘(i) cover losses only from physical 

25 damage resulting from windstorm; and 


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1 ‘‘(ii) provide for approval and pay2 ment of claims under such coverage or 

3 under the flood insurance coverage re4 quired to be maintained under paragraph 

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

6 from windstorm or flooding, respectively, 

7 but shall not require for approval and pay8 ment of a claim that the insured distin9 guish or identify the specific cause of the 

10 loss, whether windstorm or flooding. 

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

12 pursuant to paragraph (1)(A) and windstorm cov13 erage pursuant to paragraph (1)(B) shall be made 

14 available for purchase for a property only at charge15 able risk premium rates that, based on consideration 

16 of the risks involved and accepted actuarial prin17 ciples, and including operating costs and allowance 

18 and administrative expenses, are required in order to 

19 make such coverage available on an actuarial basis 

20 for the type and class of properties covered. 

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

22 shall, after consultation with persons and entities re23 ferred to in section 1306(a), provide by regulation 

24 for the general terms and conditions of insurability 

25 applicable to properties eligible for multiperil covVerDate Nov 24 2008 03:16 Mar 05, 2009 Jkt 079200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1264.IH H1264

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1 erage pursuant to paragraph (1)(A) and such terms 

2 and conditions applicable to properties eligible for 

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

4 subject to the provisions of this subsection, includ5 ing— 

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

7 any such properties which shall be eligible for 

8 such coverages, which shall include residential 

9 and nonresidential properties; 

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

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

12 subdivisions thereof) which may be covered by 

13 such coverages; 

14 ‘‘(C) the classification, limitation, and re15 jection of any risks which may be advisable; 

16 ‘‘(D) appropriate minimum premiums; 

17 ‘‘(E) appropriate loss deductibles; and 

18 ‘‘(F) any other terms and conditions relat19 ing to insurance coverage or exclusion that may 

20 be necessary to carry out this subsection. 

21 ‘‘(7) LIMITATIONS ON AMOUNT OF COV22 ERAGE.— 

23 ‘‘(A) MULTIPERIL COVERAGE.—The regu24 lations issued pursuant to paragraph (6) shall 

25 provide that the aggregate liability under 


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1 multiperil coverage made available under this 

2 subsection shall not exceed the lesser of the re3 placement cost for covered losses or the fol4 lowing amounts, as applicable: 

5 ‘‘(i) RESIDENTIAL STRUCTURES.—In 

6 the case of residential properties, which 

7 shall include structures containing multiple 

8 dwelling units that are made available for 

9 occupancy by rental (notwithstanding any 

10 treatment or classification of such prop11 erties for purposes of section 1306(b))— 

12 ‘‘(I) for any single-family dwell13 ing, $500,000; 

14 ‘‘(II) for any structure containing 

15 more than one dwelling unit, 

16 $500,000 for each separate dwelling 

17 unit in the structure, which limit, in 

18 the case of such a structure con19 taining multiple dwelling units that 

20 are made available for occupancy by 

21 rental, shall be applied so as to enable 

22 any insured or applicant for insurance 

23 to receive coverage for the structure 

24 up to a total amount that is equal to 

25 the product of the total number of 


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1 such rental dwelling units in such 

2 property and the maximum coverage 

3 limit per dwelling unit specified in 

4 this clause; and 

5 ‘‘(III) $150,000 per dwelling unit 

6 for— 

7 ‘‘(aa) any contents related 

8 to such unit; and 

9 ‘‘(bb) any necessary in10 creases in living expenses in11 curred by the insured when losses 

12 from flooding or windstorm make 

13 the residence unfit to live in. 

14 ‘‘(ii) NONRESIDENTIAL PROP15 ERTIES.—In the case of nonresidential 

16 properties (including church properties)— 

17 ‘‘(I) $1,000,000 for any single 

18 structure; and 

19 ‘‘(II) $750,000 for— 

20 ‘‘(aa) any contents related 

21 to such structure; and 

22 ‘‘(bb) in the case of any 

23 nonresidential property that is a 

24 business property, any losses re25 sulting from any partial or total 


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1 interruption of the insured’s 

2 business caused by damage to, or 

3 loss of, such property from flood4 ing or windstorm, except that for 

5 purposes of such coverage, losses 

6 shall be determined based on the 

7 profits the covered business 

8 would have earned, based on pre9 vious financial records, had the 

10 flood or windstorm not occurred. 

11 ‘‘(B) SEPARATE WINDSTORM COVERAGE.— 

12 The regulations issued pursuant to paragraph 

13 (6) shall provide that windstorm coverage pur14 suant to paragraph (1)(B) for a property shall 

15 not exceed the amount such that the aggregate 

16 liability under flood insurance coverage required 

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

18 the property and such windstorm coverage for 

19 the property does not exceed the applicable cov20 erage limit for the property set forth in sub21 paragraph (A) of this paragraph. 

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

23 take effect on, and shall apply beginning on, the ex24 piration of the 6-month period that begins on the 


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1 date of the enactment of the Multiple Peril Insur2 ance Act of 2009.’’. 

3 SEC. 3. PROHIBITION AGAINST DUPLICATIVE COVERAGE. 

4 The National Flood Insurance Act of 1968 is amend5 ed by inserting after section 1313 (42 U.S.C. 4020) the 

6 following new section: 

7 ‘‘PROHIBITION AGAINST DUPLICATIVE COVERAGE

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

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

10 property related thereto) for any period during which such 

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

12 coverage made available pursuant to section 

13 1304(c)(1)(A).’’. 

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

15 Section 1316 of the National Flood Insurance Act of 

16 1968 (42 U.S.C. 4023) is amended— 

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

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

19 (2) by adding at the end the following new sub20 section: 

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

22 multiperil coverage shall be provided under section 

23 1304(c) for any property that the Director finds has been 

24 declared by a duly constituted State or local zoning au25 thority, or other authorized public body to be in violation 


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

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

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

4 Section 1361 of the National Flood Insurance Act of 

5 1968 (42 U.S.C. 4102) is amended by adding at the end 

6 the following new subsection: 

7 ‘‘(d) WINDSTORMS.— 

8 ‘‘(1) STUDIES AND INVESTIGATIONS.—The Di9 rector shall carry out studies and investigations 

10 under this section to determine appropriate meas11 ures in wind events as to wind hazard prevention, 

12 and may enter into contracts, agreements, and other 

13 appropriate arrangements to carry out such activi14 ties. Such studies and investigations shall include 

15 laws, regulations, and ordinance relating to the or16 derly development and use of areas subject to dam17 age from windstorm risks, and zoning building 

18 codes, building permits, and subdivision and other 

19 building restrictions for such areas. 

20 ‘‘(2) COORDINATION WITH STATE AND LOCAL

21 GOVERNMENTS.—The Director shall work closely 

22 with and provide any necessary technical assistance 

23 to State, interstate, and local governmental agencies, 

24 to encourage the application of measures identified 


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1 pursuant to paragraph (1) and the adoption and en2 forcement of such measures.’’. 

3 SEC. 6. DEFINITIONS. 

4 Section 1370 of the National Flood Insurance Act of 

5 1968 (42 U.S.C. 4121) is amended— 

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

7 end; 

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

9 the end and inserting ‘‘; and’’; and 

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

11 paragraph: 

12 ‘‘(16) the term ‘windstorm’ means any hurri13 cane, tornado, cyclone, typhoon, or other wind 

14 event.’’. 

Æ 


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