Sec. 9. Improved disclosure requirement for standard flood insurance policies
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Section 100234 of the Biggert-Waters Flood Insurance Reform Act of 2012 ( 42 U.S.C. 4013a ) is amended by adding at the end the following new subsections: Each policy under the National Flood Insurance Program shall include a standard disclosure sheet that is produced by the Administrator that sets forth, in plain language— the definition of the term flood for purposes of coverage under the policy; a description of what type of flood forces are necessary so that losses from an event are covered under the policy, including overflow of inland or tidal waves, unusual and rapid accumulation or runoff of a surface any source, and mudflow; a statement acknowledging that a standard flood insurance policy does not cover basement improvements, such as finished walls, floors, and ceilings, or personal property kept in a basement; a statement acknowledging a standard flood insurance policy does not include coverage for personal property, but such coverage may be purchased, for some personal property contained in a basement, as well as personal belongings contained elsewhere in the dwelling; a statement of the other types and characteristics of losses that are not covered under the policy; a statement that the disclosure sheet provides general information about the policyholder’s standard flood insurance policy; a statement that the standard flood insurance policy, together with the endorsements and declarations page, make up the official contract and are controlling in the event that there is any difference between the information on the disclosure sheet and the information in the policy; a statement that, if the policyholder has any questions regarding information in the disclosure sheet or policy, the policyholder should contact the entity selling the policy on behalf of the Program, together with contact information sufficient to allow the policyholder to contact such entity; and any other information that the Administrator determines will be helpful to policyholder in understanding flood insurance coverage.
Each policy application under the National Flood Insurance Program shall include an acknowledgment sheet on which the policyholder shall affirmatively— acknowledge that the policyholder received the disclosure sheet required under paragraph (1); accept or decline coverage for personal property; accept or decline other optional coverage that may be available; acknowledge the policyholder’s understanding that the standard flood insurance policy, together with the endorsements and declarations page, make up the official contract and are controlling in the event that there is any difference between the information on the acknowledgment sheet and the information in the policy; and acknowledge that the policyholder has been provided and has reviewed a summary, which may be the policy declarations page, of the total cost, amount and extent of insurance coverage provided under the policy.
This section shall not be construed to void or alter the coverage terms of the underlying standard flood insurance policy and the corresponding endorsements. In the event that the customer does not affirmatively acknowledge the requirements under subsection (c)(2), a Write Your Own company may still issue the policy on behalf of the National Flood Insurance Program under such terms. . Sections 202 and 203 of the Bunning-Bereuter-Blumenauer Flood Insurance Reform Act of 2004 ( 42 U.S.C. 4011 note) is hereby repealed.
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Sec. 9
Improved disclosure requirement for standard flood insurance policies
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