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Tony

REMOVAL OF RENTERS INSURANCE IN PRIVATIZED MILITARY HOUSING LEASES

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Tony

UNCLASSIFIED

ROUTINE

R 141937Z AUG 17

FM CNO WASHINGTON DC

TO NAVADMIN

INFO CNO WASHINGTON DC

BT
UNCLAS

NAVADMIN 198/17

MSGID/GENADMIN/CNO WASHINGTON DC/DNS/AUG//

SUBJ/REMOVAL OF RENTERS INSURANCE IN PRIVATIZED MILITARY HOUSING LEASES//

REF/A/DOC/OSD/27AUG2015//

REF/B/DOC/ASN EIE/22APR2016//

NARR/REF A IS OSD MEMO APPLYING BASIC ALLOWANCE FOR HOUSING REDUCTIONS TO 
PRIVATIZED HOUSING.  REF B IS ASN EI&E MEMO, PROVISION OF RENTERS' INSURANCE 
IN PRIVATIZED MILITARY HOUSING.//

RMKS/1.  This NAVADMIN announces forthcoming changes to Navy Military Family 
Housing Public Private Venture (PPV) business agreements directed by 
references (a) and (b) that will impact residents in Department of Navy PPV 
Housing by removing the renters' insurance provided by the PPV partner as 
part of the lease agreement.

2.  Background.
    a.  On 1 January 2015, DoD eliminated the renters' insurance component 
from the basic allowance for housing (BAH) rate calculation in an effort to 
slow the growth in compensation costs.  Further information regarding how BAH 
is calculated can be found on the Defense Travel Management Office BAH 
website:
http://www.defensetravel.dod.mil/site/bah.cfm.
    b.  Per reference (a), the Assistant Secretary of the Navy (Energy, 
Installations and Environment) directed Naval Facilities Engineering Command 
(NAVFAC) to amend PPV business agreements to remove the automatic inclusion 
of renters' insurance from PPV leases.

3.  Discussion.
    a.  Current and future residents of PPV housing are advised that, as a 
result of this amendment to the business agreements, they will no longer 
automatically receive renters' insurance in PPV housing.  Military residents 
are encouraged, but not required, to obtain renters' insurance once current 
insurance coverage expires.
    b.  Members with rate protected BAH pre-dating the 1 January
2015 changes will continue to receive BAH that includes an insurance 
component.  PPV Partners are required to provide continued insurance 
coverage, or a benefit of corresponding value, to those members until their 
rate protection would otherwise cease (e.g., permanent change of station, 
change in pay grade, or change in dependent status).  BAH for all other 
members presently accounts for the eliminated renters' insurance component.
    c.  Per reference (b), PPV business agreements will be amended and the 
effective implementation date is targeted for six months after this NAVADMIN 
release.  PPV Partners will continue to provide renters' insurance for the 
term of all PPV leases (including
renewals) executed prior to the amendment of the PPV business agreements.

4.  Action.
    a.  NAVFAC
        (1)Amend PPV business agreements to remove the automatic inclusion of 
renters' insurance in PPV leases.
    b.  CNIC
        (1) Make frequently asked questions on renters' insurance available 
in all Housing Service Centers and online at 
https://cnic.navy.mil/housing.html.
        (2) Task Housing Service Centers to:
            (a) Notify PPV Housing residents that renters'
insurance will not be provided as an automatic entitlement in their PPV 
leases.
            (b) Educate military members seeking housing referral counseling 
on the importance of renters' insurance, and encourage residents to purchase 
renters' insurance for their own protection.
            (c) Coordinate with PPV property managers to provide residents 
with at least 30 days prior notice of when renters'
insurance will no longer be provided in their leases, and advise on whether 
coverage will be provided as a promotional incentive.

5.  Point of contact is Virginia Greene, CNIC N93, at 202-433-4256 or via 
email at virginia.greene(AT)navy.mil.

6.  Released by VADM J. G. FOGGO, Director, Navy Staff.//

BT
#0001
NNNN
UNCLASSIFIED//

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