Important updates regarding insurance requirements from Fannie Mae and Freddie Mac have just been released. The most notable change is the acceptance of Actual Cash Value (ACV) for roof coverage, which marks a significant shift from the previous requirement for replacement cost. This change should provide greater flexibility for coverage options.
Additionally, there is a new maximum per unit deductible cap of $50,000 for Condo master policies, which will go into effect starting July 1, 2026. This update is designed to make coverage more accessible and manageable for condo associations.
Check with your insurance agent to see how these changes might affect you.
You can read the full executive summary below.