We have an important update that directly impacts Colorado communities and their ability to obtain conventional mortgage financing.

Many communities made costly insurance changes to meet prior requirements—this update may eliminate some of those needs.

Fannie Mae & Freddie Mac Update Property Insurance Requirements

Fannie Mae and Freddie Mac have just released updated insurance guidance that addresses many of the challenges created by prior requirements over the past two years.

🔑 Key Insurance Updates

• Roof coverage flexibility: Roofs must still be insured, but Replacement Cost Coverage is no longer required. Actual Cash Value coverage will now be acceptable.



• Deductibles exceeding 5% of the total insured value will be acceptable, so long as the deductible does not exceed $50,000 per unit.

What This Means for Your Communities

• More flexibility in structuring insurance programs
• Fewer communities being flagged as non-warrantable
• New rules may allow communities to REDUCE premiums while staying compliant
• Improved ability for buyers to secure conventional mortgage loans

Many communities adjusted their coverage to meet prior requirements. Those same programs may now be more expensive than necessary.

If you have a community you’d like us to review, we will be happy to take a look at opportunities to reduce costs or improve compliance under the new guidelines. Just reply to this email, or click the button below:

8301 East Prentice Ave, Suite 410

Greenwood Village, CO 80111

303-805-5000

info@insureHOA.com

Network Insurance Services, LLC is a locally owned Insurance Brokerage. The Denver Business Journal ranks us in the Top 20 Largest Independent Insurance Brokers in Colorado. Network has built its reputation on honest up-front communication using a high touch service & consultative problem-solving approach to our partnership with community associations.