An amendment numbered 23 printed in House Report 112-138 to direct the GAO to conduct a study of the means and effects of facilitating a market for all-peril insurance policies for residential properties.

1. Adds SEC. 27. STUDY OF ALL-PERIL INSURANCE COVERAGE FOR RESIDENTIAL PROPERTIES on page 70, line 5

   Adds a sectionPrinted page

   Inserted: SEC. 27. STUDY OF ALL-PERIL INSURANCE COVERAGE FOR RESIDENTIAL PROPERTIES.

   Inserted: (a) Study.--The Comptroller General of the United States shall conduct a study to determine various means and methods by which a market could be established, and the effectiveness and feasibility of each such means and method, for providing all-peril insurance coverage for residential properties. Such study shall analyze and determine, for only residential properties with mortgages insured under the FHA mortgage insurance programs of the Secretary of Housing and Urban Development, and for all residential properties--

   Inserted: (1) whether a viable insurance market could be established, including by establishment of a Federal program for reinsurance for such all-peril insurance coverage and by other means and methods;

   Inserted: (2) the effects of each such means and method of establishing such a market in facilitating and encouraging the private insurance market to develop and offer all-peril insurance products for residential properties;

   Inserted: (3) the cost of such all-peril insurance coverage for various types of residential properties; and

   Inserted: (4) the effects that requiring such insurance coverage would have on prices for existing housing and for housing constructed in the future.

   Inserted: (b) Report.--Not later than the expiration of the 12-month period beginning on the date of the enactment of this Act, the Comptroller General shall submit to the Congress a report describing the study conducted pursuant to subsection (a) and the analysis conducted under such study, and setting forth the results and determinations of the study.

   Inserted: (c) All-peril Insurance.--For purposes of this section, the term "all-peril insurance" means, with respect a residential property, insurance coverage meeting the following requirements:

   Inserted: (1) Substantial deductible.--The coverage is made available subject to a substantial deductible in relation to the amount of coverage provided.

   Inserted: (2) Covered losses.--The coverage covers only damage and losses to the property that--

   Inserted: (A) render the property uninhabitable or substantially impair the habitability of the property; and

   Inserted: (B) result from any of the following hazards--

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   Inserted: (i) movement of the earth, including earthquakes, shockwaves, sinkholes, landslides, and mudflows;

   Inserted: (ii) water damage, including floods, sewer back-ups, and water seepage through the foundation;

   Inserted: (iii) war, including undeclared war and civil war;

   Inserted: (iv) nuclear hazards, including explosion of nuclear devices and nuclear reactor accidents;

   Inserted: (v) governmental action, including the destruction, confiscation, or seizure of covered property by any governmental or public authority; or

   Inserted: (vi) bad repair or workmanship on a property, use of faulty construction materials in a property, or defective maintenance to a property.

   Original wording

   Page 70, after line 5, insert the following new section:

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As printed