In anticipation of next month’s Monroe County Insurance Solutions Town Hall: Roofs and Coverage, July’s tip is all about keeping a roof over your head!
The need for the town hall arose from Citizens requiring property owners to replace their roof or face non-renewal–oftentimes despite the Remaining Useful Life (RUL) of the roof. Citizens began targeting condominiums and commercial properties, and now some single-family residential properties are receiving notices. In the Keys where residents have few options for private insurers, this practice leaves some without any windstorm coverage at all.
Perhaps related to Citizens’ criteria, beginning July 1, 2026, Fannie Mae and Freddie Mac began accepting Actual Cash Value (ACV) for roof coverage, which marks a significant shift from the previous requirement for Replacement Cost Value (RCV).
From our friends at United Policyholders:
Replacement Cost Value (RCV) coverage covers the cost of repairing or replacing your roof at current costs (up to policy limits). By contrast, Actual Cash Value (ACV) is depreciated coverage that only covers a portion of the damage. If you have ACV-only coverage and wind, heavy rain or hail damages your roof, you have to come up with cash to cover what is often a large gap in the costs of repairing or replacing it.
The Federal Housing Finance Agency’s (FHFA) recent change legitimizes a trend where many insurers are:
- Selling ACV-only coverage on roofs
- Adding a special high deductivle applicable to wind or hail damage
- Dropping customers based on an aerial image of their roof
- Requiring a new roof as a condition of a renewal, even where the roof isn’t leaking and may still be under warranty
So what’s a property owner to do?
- Aim for RCV coverage and avoid ACV if feasible
- Find an insurance professional who will help you reduce your premium without sacrificing essential protection
- Maintain your roof and fix issues as soon as they arise
My Safe Florida Home
If you’re unsure about the condition of your roof, My Safe Florida Home offers free windstorm inspections as well as grant funding for upgrades if you’re eligible.