REMOVAL OF RENTERS INSURANCE IN PRIVATIZED MILITARY HOUSING LEASES:
R 141937Z AUG 17
FM CNO WASHINGTON DC
INFO CNO WASHINGTON DC
MSGID/GENADMIN/CNO WASHINGTON DC/DNS/AUG//
SUBJ/REMOVAL OF RENTERS INSURANCE IN PRIVATIZED MILITARY HOUSING LEASES//
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.
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
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.
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.
(1)Amend PPV business agreements to remove the automatic inclusion of
renters' insurance in PPV leases.
(1) Make frequently asked questions on renters' insurance available
in all Housing Service Centers and online at
(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
(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 email@example.com.
6. Released by VADM J. G. FOGGO, Director, Navy Staff.//