‘‘PROHIBITION AGAINST DUPLICATIVE COVERAGE 
‘‘SEC. 1314. Flood insurance under this title may not 
be provided with respect to any structure (or the personal 
property related thereto) for any period during which such 
structure is covered, at any time, by multiperil insurance 
coverage made available pursuant to section 1304(c).’’. 
(c) COMPLIANCE WITH STATE AND LOCAL LAW.— 
Section 1316 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4023) is amended— 
(1) by inserting ‘‘(a) FLOOD
PROTECTION 
MEASURES.—’’ before ‘‘No new’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(b) WINDSTORM PROTECTION MEASURES.—No new 
multiperil coverage shall be provided under section 
1304(c) for any property that the Director finds has been 
declared by a duly constituted State or local zoning au-
thority, or other authorized public body to be in violation 
of State or local laws, regulations, or ordinances, which 
are intended to reduce damage caused by windstorms.’’. 
(d) CRITERIA FOR LAND MANAGEMENT AND USE.— 
Section 1361 of the National Flood Insurance Act of 1968 
(42 U.S.C. 4102) is amended by adding at the end the 
following new subsection: 
‘‘(d) WINDSTORMS.— 
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‘‘(1) STUDIES AND INVESTIGATIONS.—The Di-
rector shall carry out studies and investigations 
under this section to determine appropriate meas-
ures in windstorm-prone areas as to land manage-
ment and use, windstorm zoning, and windstorm 
damage prevention, and may enter into contracts, 
agreements, and other appropriate arrangements to 
carry out such activities. Such studies and investiga-
tions shall include laws, regulations, and ordinance 
relating to the orderly development and use of areas 
subject to damage from windstorm risks, and zoning 
building codes, building permits, and subdivision and 
other building restrictions for such areas. 
‘‘(2) CRITERIA.—On the basis of the studies 
and investigations pursuant to paragraph (1) and 
such other information as may be appropriate, the 
Direct shall establish comprehensive criteria de-
signed to encourage, where necessary, the adoption 
of adequate State and local measures which, to the 
maximum extent feasible, will assist in reducing 
damage caused by windstorms. 
‘‘(3) COORDINATION WITH STATE AND LOCAL 
GOVERNMENTS.—The Director shall work closely 
with and provide any necessary technical assistance 
to State, interstate, and local governmental agencies, 
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to encourage the application of criteria established 
under paragraph (2) and the adoption and enforce-
ment of measures referred to in such paragraph .’’. 
(e) DEFINITIONS.—Section 1370 of the National 
Flood Insurance Act of 1968 (42 U.S.C. 4121) is amend-
ed— 
(1) in paragraph (14), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (15) by striking the period at 
the end and inserting ‘‘; and’’; and 
(3) by adding at the end the following new 
paragraph: 
‘‘(16) the term ‘windstorm’ means any hurri-
cane, tornado, cyclone, typhoon, or other wind 
event.’’. 
SEC. 8. MAXIMUM COVERAGE LIMITS. 
Subsection (b) of section 1306 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4013(b)) is amended— 
(1) in paragraph (2), by striking ‘‘$250,000’’ 
and inserting ‘‘$335,000’’; 
(2) in paragraph (3), by striking ‘‘$100,000’’ 
and inserting ‘‘$135,000’’; and 
(3) in paragraph (4), by striking ‘‘$500,000’’ 
each place such term appears and inserting 
‘‘$670,000’’. 
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SEC. 9. COVERAGE FOR ADDITIONAL LIVING EXPENSES, 
BASEMENT 
IMPROVEMENTS, 
BUSINESS 
INTERRUPTION, AND REPLACEMENT COST 
OF CONTENTS. 
Subsection (b) of section 1306 of the National Flood 
Insurance Act of 1968 (42 U.S.C. 4013) is amended— 
(1) in paragraph (4), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (5)— 
(A) by inserting ‘‘pursuant to paragraph 
(2), (3), or (4)’’ after ‘‘any flood insurance cov-
erage’’; and 
(B) by striking the period at the end and 
inserting a semicolon; and 
(3) by adding at the end the following new 
paragraphs: 
‘‘(6) in the case of any residential property, 
each renewal or new contract for flood insurance 
coverage shall provide not less than $1,000 aggre-
gate liability per dwelling unit for any necessary in-
creases in living expenses incurred by the insured 
when losses from a flood make the residence unfit to 
live in, which coverage shall be available only at 
chargeable rates that are not less than the estimated 
premium rates for such coverage determined in ac-
cordance with section 1307(a)(1); 
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‘‘(7) in the case of any residential property, op-
tional coverage for additional living expenses de-
scribed in paragraph (6) shall be made available to 
every insured upon renewal and every applicant in 
excess of the limits provided in paragraph (6) in 
such amounts and at such rates as the Director 
shall establish, except that such chargeable rates 
shall not be less than the estimated premium rates 
for such coverage determined in accordance with sec-
tion 1307(a)(1); 
‘‘(8) in the case of any residential property, op-
tional coverage for losses, resulting from floods, to 
improvements and personal property located in base-
ments, crawl spaces, and other enclosed areas under 
buildings that are not covered by primary flood in-
surance coverage under this title, shall be made 
available to every insured upon renewal and every 
applicant, except that such coverage shall be made 
available only at chargeable rates that are not less 
than the estimated premium rates for such coverage 
determined in accordance with section 1307(a)(1); 
‘‘(9) in the case of any commercial property, 
optional coverage for losses resulting from any par-
tial or total interruption of the insured’s business 
caused by damage to, or loss of, such property from 
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a flood shall be made available to every insured upon 
renewal and every applicant, except that— 
‘‘(A) for purposes of such coverage, losses 
shall be determined based on the profits the 
covered business would have earned, based on 
previous financial records, had the flood not oc-
curred; and 
‘‘(B) such coverage shall be made available 
only at chargeable rates that are not less than 
the estimated premium rates for such coverage 
determined 
in 
accordance 
with 
section 
1307(a)(1); and 
‘‘(10) in the case of any residential property 
and any commercial property, optional coverage for 
the full replacement costs of any contents related to 
the structure that exceed the limits of coverage oth-
erwise provided in this subsection shall be made 
available to every insured upon renewal and every 
applicant, except that such coverage shall be made 
available only at chargeable rates that are not less 
than the estimated premium rates for such coverage 
determined in accordance with section 1307(a)(1).’’. 
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SEC. 10. NOTIFICATION TO TENANTS OF AVAILABILITY OF 
CONTENTS INSURANCE. 
The National Flood Insurance Act of 1968 is amend-
ed by inserting after section 1308 (42 U.S.C. 4015) the 
following new section: 
‘‘SEC. 1308A. NOTIFICATION TO TENANTS OF AVAILABILITY 
OF CONTENTS INSURANCE. 
‘‘(a) IN GENERAL.—The Director shall, upon enter-
ing into a contract for flood insurance coverage under this 
title for any property located in an area having special 
flood hazards— 
‘‘(1) provide to the insured sufficient copies of 
the notice developed pursuant to subsection (b) to 
provide for distribution of a copy of such notice to 
each tenant of the property; and 
‘‘(2) strongly encourage the insured to provide 
a copy to each such tenant and to each new tenant 
upon commencement of such a tenancy. 
‘‘(b) NOTICE.—Notice to a tenant of a property in 
accordance with this subsection is written notice that 
clearly informs a tenant— 
‘‘(1) that the property is located in an area hav-
ing special flood hazards; 
‘‘(2) that flood insurance coverage is available 
under the national flood insurance program under 
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this title for contents of the unit or structure leased 
by the tenant; 
‘‘(3) of the maximum amount of such coverage 
for contents available under this title at that time; 
and 
‘‘(4) of where to obtain information regarding 
how to obtain such coverage, including a telephone 
number, mailing address, and location on the World 
Wide Web of the Director where such information is 
available.’’. 
SEC. 11. INCREASE IN ANNUAL LIMITATION ON PREMIUM 
INCREASES. 
Section 1308(e) of the National Flood Insurance Act 
of 1968 (42 U.S.C. 4015(e)) is amended by striking ‘‘10 
percent’’ and inserting ‘‘15 percent’’. 
SEC. 12. INCREASE IN BORROWING AUTHORITY. 
(a) BORROWING AUTHORITY.—The first sentence of 
subsection (a) of section 1309 of the National Flood In-
surance Act of 1968 (42 U.S.C. 4016(a)), as amended by 
the National Flood Insurance Program Further Enhanced 
Borrowing Authority Act of 2005 (Public Law 109–106; 
119 
Stat. 
2288), 
is 
amended 
by 
striking 
‘‘$20,775,000,000’’ and inserting ‘‘$21,500,000,000’’. 
(b) FEMA REPORT.—Not later than the expiration 
of the 6-month period beginning on the date of the enact-
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ment of this Act, the Director of the Federal Emergency 
Management Agency shall submit a report to the Congress 
setting forth a plan for repaying any amounts borrowed 
pursuant to increase in borrowing authority authorized 
under the amendments made by subsection (a). 
SEC. 13. FEMA PARTICIPATION IN STATE DISASTER CLAIMS 
MEDIATION PROGRAMS. 
Chapter I of the National Flood Insurance Act of 
1968 (42 U.S.C. 4011 et seq.) is amended by adding at 
the end the following new section: 
‘‘SEC. 1325. FEMA PARTICIPATION IN STATE DISASTER 
CLAIMS MEDIATION PROGRAMS. 
‘‘(a) REQUIREMENT TO PARTICIPATE.—In the case 
of the occurrence of a natural catastrophe that may have 
resulted in flood damage covered by insurance made avail-
able under the national flood insurance program and a loss 
covered by personal lines residential property insurance 
policy, upon request made by the insurance commissioner 
of a State (or such other official responsible for regulating 
the business of insurance in the State) for the participa-
tion of representatives of the Director in a program spon-
sored by such State for nonbinding mediation of insurance 
claims resulting from a natural catastrophe, the Director 
shall cause such representatives to participate in such 
State program, when claims under the national flood in-
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surance program are involved, to expedite settlement of 
flood damage claims resulting from such catastrophe. 
‘‘(b) EXTENT OF PARTICIPATION.—Participation by 
representatives of the Director required under subsection 
(a) with respect to flood damage claims resulting from a 
natural catastrophe shall include— 
‘‘(1) providing adjusters certified for purposes 
of the national flood insurance program who are au-
thorized to settle claims against such program re-
sulting from such catastrophe in amounts up to the 
limits of policies under such program; 
‘‘(2) requiring such adjusters to attend State- 
sponsored mediation meetings regarding flood insur-
ance claims resulting from such catastrophe at times 
and places as may be arranged by the State; 
‘‘(3) participating in good-faith negotiations to-
ward the settlement of such claims with policy-
holders of coverage made available under the na-
tional flood insurance program; and 
‘‘(4) finalizing the settlement of such claims on 
behalf of the national flood insurance program with 
such policyholders. 
‘‘(c) COORDINATION.—Representatives of the Direc-
tor who participate pursuant to this section in a State- 
sponsored mediation program with respect to a natural ca-
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tastrophe shall at all times coordinate their activities with 
insurance officials of the State and representatives of in-
surers for the purpose of consolidating and expediting the 
settlement of claims under the national flood insurance 
program resulting from such catastrophe at the earliest 
possible time. 
‘‘(d) MEDIATION PROCEEDINGS
AND PRIVILEGED 
DOCUMENTS.—As a condition of the participation of Rep-
resentatives of the Director pursuant to this section in 
State-sponsored mediation, all statements made and docu-
ments produced pursuant to such mediation involving rep-
resentatives of the Director shall be deemed privileged and 
confidential settlement negotiations made in anticipation 
of litigation. 
‘‘(e) EFFECT
OF PARTICIPATION
ON LIABILITY, 
RIGHT, AND OBLIGATIONS.—Participation of Representa-
tives of the Director pursuant to this section in State- 
sponsored mediation shall not affect or expand the liability 
of any party in contract or in tort, nor shall it affect the 
rights or obligations of the parties as provided in the 
Standard Flood Insurance Policy under the national flood 
insurance program, regulations of the Federal Emergency 
Management Agency, this Act, or Federal common law. 
‘‘(f) EXCLUSIVE FEDERAL JURISDICTION.—Partici-
pation of Representatives of the Director pursuant to this 
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section in State-sponsored mediation shall not alter, 
change or modify the original exclusive jurisdiction of 
United States courts as provided in this Act. 
‘‘(g) COST LIMITATION.—Nothing in this section 
shall be construed to require the Director or representa-
tives of the Director to pay additional mediation fees relat-
ing to flood claims associated with a State-sponsored me-
diation program in which representatives of the Director 
participate. 
‘‘(h) EXCEPTION.—In the case of the occurrence of 
a natural catastrophe that results in flood damage claims 
under the national flood insurance program and does not 
result in any loss covered by a personal lines residential 
property insurance policy— 
‘‘(1) this section shall not apply; and 
‘‘(2) the provisions of the Standard Flood In-
surance Policy under the national flood insurance 
program and the appeals process established pursu-
ant to section 205 of the Bunning-Bereueter- 
Blumenauer Flood Insurance Reform Act of 2004 
(Public Law 108–264; 118 Stat. 726) and regula-
tions issued pursuant to such section shall apply ex-
clusively. 
‘‘(i) REPRESENTATIVES
OF DIRECTOR.—For pur-
poses of this section, the term ‘representatives of the Di-
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rector’ means representatives of the national flood insur-
ance program who participate in the appeals process es-
tablished pursuant to section 205 of the Bunning- 
Bereueter-Blumenauer Flood Insurance Reform Act of 
2004 (Public Law 108–264; 118 Stat. 726) and regula-
tions issued pursuant to such section.’’. 
SEC. 14. FEMA ANNUAL REPORT ON INSURANCE PROGRAM. 
Section 1320 of the National Flood Insurance Act of 
1968 (42 U.S.C. 4027) is amended— 
(1) in the section heading, by striking ‘‘REPORT 
TO THE PRESIDENT’’ and inserting ‘‘ANNUAL RE-
PORT TO CONGRESS’’; 
(2) in subsection (a)— 
(A) by striking ‘‘biennially’’; 
(B) by striking ‘‘the President for submis-
sion to’’; and 
(C) by inserting ‘‘not later than June 30 
of each year’’ before the period at the end; 
(3) in subsection (b), by striking ‘‘biennial’’ and 
inserting ‘‘annual’’; and 
(4) by adding at the end the following new sub-
section: 
‘‘(c) FINANCIAL STATUS OF PROGRAM.—The report 
under this section for each year shall include information 
regarding the financial status of the national flood insur-
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