Fannie Mae and Freddie Mac are rolling back certain property insurance requirements for condominiums and single-family homes in response to “skyrocketing” insurance prices, the Federal Housing Finance Agency announced today.
Fannie and Freddie will now accept actual cash value coverage on roofs for single-family homes and condos, according to the FHFA. The rest of the house must have replacement cost value coverage, which usually has higher premiums but more extensive coverage. The agency said the change is being made because full replacement roof coverage has become expensive and hard-to-find in many states.
FHFA said that Fannie’s and Freddie’s “maximum per-unit deductible” rule has been simplified, and that it has rescinded a 2024 rule clarification that slowed down insurance claims. The agency also made several other changes, such as expanding the “exempt from review” requirement to apply to new and established condos and retiring the 50% owner occupancy requirement for established condos.
