
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC4013]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                  CHAPTER 50--NATIONAL FLOOD INSURANCE
 
           SUBCHAPTER I--THE NATIONAL FLOOD INSURANCE PROGRAM
 
Sec. 4013. Nature and limitation of insurance coverage


(a) Regulations respecting general terms and conditions of insurability

    The Director shall from time to time, after consultation with the 
advisory committee authorized under section 4025 of this title, 
appropriate representatives of the pool formed or otherwise created 
under section 4051 of this title, and appropriate representatives of the 
insurance authorities of the respective States, provide by regulation 
for general terms and conditions of insurability which shall be 
applicable to properties eligible for flood insurance coverage under 
section 4012 of this title, including--
        (1) the types, classes, and locations of any such properties 
    which shall be eligible for flood insurance;
        (2) the nature and limits of loss or damage in any areas (or 
    subdivisions thereof) which may be covered by such insurance;
        (3) the classification, limitation, and rejection of any risks 
    which may be advisable;
        (4) appropriate minimum premiums;
        (5) appropriate loss-deductibles; and
        (6) any other terms and conditions relating to insurance 
    coverage or exclusion which may be necessary to carry out the 
    purposes of this chapter.

(b) Regulations respecting amount of coverage

    In addition to any other terms and conditions under subsection (a) 
of this section, such regulations shall provide that--
        (1) any flood insurance coverage based on chargeable premium 
    rates under section 4015 of this title which are less than the 
    estimated premium rates under section 4014(a)(1) of this title shall 
    not exceed--
            (A) in the case of residential properties--
                (i) $35,000 aggregate liability for any single-family 
            dwelling, and $100,000 for any residential structure 
            containing more than one dwelling unit,
                (ii) $10,000 aggregate liability per dwelling unit for 
            any contents related to such unit, and
                (iii) in the States of Alaska and Hawaii, and in the 
            Virgin Islands and Guam; the limits provided in clause (i) 
            of this sentence shall be: $50,000 aggregate liability for 
            any single-family dwelling, and $150,000 for any residential 
            structure containing more than one dwelling unit;

            (B) in the case of business properties which are owned or 
        leased and operated by small business concerns, an aggregate 
        liability with respect to any single structure, including any 
        contents thereof related to premises of small business occupants 
        (as that term is defined by the Director), which shall be equal 
        to (i) $100,000 plus (ii) $100,000 multiplied by the number of 
        such occupants and shall be allocated among such occupants (or 
        among the occupant or occupants and the owner) under regulations 
        prescribed by the Director; except that the aggregate liability 
        for the structure itself may in no case exceed $100,000; and
            (C) in the case of church properties and any other 
        properties which may become eligible for flood insurance under 
        section 4012 of this title--
                (i) $100,000 aggregate liability for any single 
            structure, and
                (ii) $100,000 aggregate liability per unit for any 
            contents related to such unit; and

        (2) in the case of any residential property for which the risk 
    premium rate is determined in accordance with the provisions of 
    section 4014(a)(1) of this title, additional flood insurance in 
    excess of the limits specified in clause (i) of subparagraph (A) of 
    paragraph (1) shall be made available to every insured upon renewal 
    and every applicant for insurance so as to enable such insured or 
    applicant to receive coverage up to a total amount (including such 
    limits specified in paragraph (1)(A)(i)) of $250,000;
        (3) in the case of any residential property for which the risk 
    premium rate is determined in accordance with the provisions of 
    section 4014(a)(1) of this title, additional flood insurance in 
    excess of the limits specified in clause (ii) of subparagraph (A) of 
    paragraph (1) shall be made available to every insured upon renewal 
    and every applicant for insurance so as to enable any such insured 
    or applicant to receive coverage up to a total amount (including 
    such limits specified in paragraph (1)(A)(ii)) of $100,000;
        (4) in the case of any nonresidential property, including 
    churches, for which the risk premium rate is determined in 
    accordance with the provisions of section 4014(a)(1) of this title, 
    additional flood insurance in excess of the limits specified in 
    subparagraphs (B) and (C) of paragraph (1) shall be made available 
    to every insured upon renewal and every applicant for insurance, in 
    respect to any single structure, up to a total amount (including 
    such limit specified in subparagraph (B) or (C) of paragraph (1), as 
    applicable) of $500,000 for each structure and $500,000 for any 
    contents related to each structure; and
        (5) any flood insurance coverage which may be made available in 
    excess of the limits specified in subparagraph (A), (B), or (C) of 
    paragraph (1), shall be based only on chargeable premium rates under 
    section 4015 of this title, which are not less than the estimated 
    premium rates under section 4014(a)(1) of this title, and the amount 
    of such excess coverage shall not in any case exceed an amount equal 
    to the applicable limit so specified (or allocated) under paragraph 
    (1)(C), (2), (3), or (4), as applicable.

(c) Effective date of policies

                         (1) Waiting period

        Except as provided in paragraph (2), coverage under a new 
    contract for flood insurance coverage under this chapter entered 
    into after September 23, 1994, and any modification to coverage 
    under an existing flood insurance contract made after September 23, 
    1994, shall become effective upon the expiration of the 30-day 
    period beginning on the date that all obligations for such coverage 
    (including completion of the application and payment of any initial 
    premiums owed) are satisfactorily completed.

                            (2) Exception

        The provisions of paragraph (1) shall not apply to--
            (A) the initial purchase of flood insurance coverage under 
        this chapter when the purchase of insurance is in connection 
        with the making, increasing, extension, or renewal of a loan; or
            (B) the initial purchase of flood insurance coverage 
        pursuant to a revision or updating of floodplain areas or flood-
        risk zones under section 4101(f) of this title, if such purchase 
        occurs during the 1-year period beginning upon publication of 
        notice of the revision or updating under section 4101(h) of this 
        title.

(Pub. L. 90-448, title XIII, Sec. 1306, Aug. 1, 1968, 82 Stat. 575; Pub. 
L. 92-213, Sec. 2(c)(2), Dec. 22, 1971, 85 Stat. 775; Pub. L. 93-234, 
title I, Sec. 101, Dec. 31, 1973, 87 Stat. 977; Pub. L. 95-128, title 
VII, Sec. 704(a), Oct. 12, 1977, 91 Stat. 1145; Pub. L. 98-181, title 
IV, Sec. 451(d)(1), Nov. 30, 1983, 97 Stat. 1229; Pub. L. 100-242, title 
V, Sec. 544(a), Feb. 5, 1988, 101 Stat. 1940; Pub. L. 100-628, title X, 
Sec. 1086(a), Nov. 7, 1988, 102 Stat. 3278; Pub. L. 100-707, title I, 
Sec. 109(o), Nov. 23, 1988, 102 Stat. 4709; Pub. L. 101-137, Sec. 1(c), 
Nov. 3, 1989, 103 Stat. 824; Pub. L. 101-508, title II, Sec. 2302(d), 
Nov. 5, 1990, 104 Stat. 1388-23; Pub. L. 103-325, title V, Secs. 552(a), 
573, 579(a), Sept. 23, 1994, 108 Stat. 2269, 2278, 2284.)


                               Amendments

    1994--Subsec. (b)(2). Pub. L. 103-325, Sec. 573(a)(1), substituted 
``a total amount (including such limits specified in paragraph 
(1)(A)(i)) of $250,000'' for ``an amount of $150,000 under the 
provisions of this clause''.
    Subsec. (b)(3). Pub. L. 103-325, Sec. 573(a)(2), substituted ``a 
total amount (including such limits specified in paragraph (1)(A)(ii)) 
of $100,000'' for ``an amount of $50,000 under the provisions of this 
clause''.
    Subsec. (b)(4). Pub. L. 103-325, Sec. 573(a)(3), added par. (4) and 
struck out former par. (4) which read as follows: ``in the case of 
business property owned, leased, or operated by small business concerns 
for which the risk premium rate is determined in accordance with the 
provisions of section 4014(a)(1) of this title, additional flood 
insurance in excess of the limits specified in subparagraph (B) of 
paragraph (1) shall be made available to every such owner, lessee, or 
operator in respect to any single structure, including any contents 
thereof, related to premises of small business occupants (as that term 
is defined by the Director), up to an amount equal to (i) $250,000 plus 
(ii) $200,000 multiplied by the number of such occupants which coverage 
shall be allocated among such occupants (or among the occupant or 
occupants and the owner) in accordance with the regulations prescribed 
by the Director pursuant to such subparagraph (B), except that the 
aggregate liability for the structure itself may in no case exceed 
$250,000;''.
    Subsec. (b)(5). Pub. L. 103-325, Sec. 573(b)(1), substituted a 
period for ``; and'' at end.
    Subsec. (b)(6). Pub. L. 103-325, Sec. 573(b)(2), struck out par. (6) 
which read as follows: ``the flood insurance purchase requirements of 
section 4012a of this title do not apply to the additional flood 
insurance limits made available in excess of twice the limits made 
available under paragraph (1).''
    Subsec. (c). Pub. L. 103-325, Sec. 579(a), added subsec. (c).
    Pub. L. 103-325, Sec. 552(a), struck out subsec. (c) which related 
to schedule for payment of flood insurance for structures on land 
subject to imminent collapse or subsidence.
    1990--Subsec. (c)(7). Pub. L. 101-508 substituted ``September 30, 
1995'' for ``September 30, 1991''.
    1989--Subsec. (c)(7). Pub. L. 101-137 substituted ``September 30, 
1991'' for ``September 30, 1989''.
    1988--Subsec. (c). Pub. L. 100-242 added subsec. (c).
    Subsec. (c)(1)(A). Pub. L. 100-628 substituted ``following'' for 
``Following'' in cls. (i) and (ii).
    Subsec. (c)(5). Pub. L. 100-707 substituted ``Disaster Relief and 
Emergency Assistance Act'' for ``Disaster Relief Act of 1974''.
    1983--Subsecs. (a), (b)(1)(B), (4). Pub. L. 98-181 substituted 
``Director'' for ``Secretary'' wherever appearing.
    1977--Subsec. (b)(2). Pub. L. 95-128 added par. (2) and redesignated 
former par. (2) as (5).
    Subsec. (b)(3), (4). Pub. L. 95-128 added pars. (3) and (4).
    Subsec. (b)(5). Pub. L. 95-128 redesignated former par. (2) as (5), 
struck out ``(or allocated to any person under subparagraph (B) of such 
paragraph)'' after ``paragraph (1)'', and inserted ``under paragraph 
(1)(C), (2), (3), or (4), as applicable'' after ``(or allocated)''.
    Subsec. (b)(6). Pub. L. 95-128 added par. (6).
    1973--Subsec. (b)(1)(A). Pub. L. 93-234, Sec. 101(a), in increasing 
limits of coverage, struck out following introductory text ``residential 
properties'' the clause ``which are designed for the occupancy of from 
one to four families''; substituted provisions in cl. (i) ``$35,000 
aggregate liability for any single-family dwelling, and $100,000 for any 
residential structure containing more than one dwelling unit'' for 
``$17,500 aggregate liability for any dwelling unit, and $30,000 for any 
single dwelling structure containing more than one dwelling unit''; 
increased cl. (ii) limits to $10,000 from $5,000 and added cl. (iii).
    Subsec. (b)(1)(B). Pub. L. 93-234, Sec. 101(b), substituted 
``$100,000'' for ``$30,000'' in cl. (i), for ``$5,000'' in cl. (ii), and 
for ``$30,000'' in exception provision.
    Subsec. (b)(1)(C). Pub. L. 93-234, Sec. 101(c), increased cl. (i) 
limits to $100,000 from $30,000 and substituted cl. (ii) ``$100,000 
aggregate liability per unit for any contents related to such unit'' for 
``$5,000 aggregate liability per dwelling unit for any contents related 
to such unit in the case of residential properties, or per occupant (as 
that term is defined by the Secretary) for any contents related to the 
premises occupied in the case of any other properties''.
    1971--Subsec. (b)(1)(C). Pub. L. 92-213 inserted ``church 
properties, and'' before ``any other properties which may become''.


                    Effective Date of 1988 Amendment

    Section 544(b) of Pub. L. 100-242 provided that: ``The amendment 
made by this section [amending this section] shall become effective on 
the date of the enactment of this Act [Feb. 5, 1988].''


                            Savings Provision

    Section 552(c) of Pub. L. 103-325 provided that: ``Notwithstanding 
subsection (a) [amending this section], the Director shall take any 
action necessary to make payments under flood insurance contracts 
pursuant to any commitments made before the expiration of the period 
referred to in subsection (b) [set out below] pursuant to the authority 
under section 1306(c) of the National Flood Insurance Act of 1968 
[subsec. (c) of this section] or subsection (b).''


                            Transition Phase

    Section 552(b) of Pub. L. 103-325 provided that: ``Notwithstanding 
subsection (a) [amending this section], during the 1-year period 
beginning on the date of enactment of this Act [Sept. 23, 1994], the 
Director of the Federal Emergency Management Agency may pay amounts 
under flood insurance contracts for demolition or relocation of 
structures as provided in section 1306(c) of the National Flood 
Insurance Act of 1968 [subsec. (c) of this section] (as in effect 
immediately before the enactment of this Act).''
