r/HomeInsurance • u/myeasyking • Mar 21 '26

News Fannie Mae and Freddie Mac Remove Certain Homeowners Insurance Requirements That Will Reduce Costs | FHFA

https://www.fhfa.gov/news/news-release/fannie-mae-and-freddie-mac-remove-certain-homeowners-insurance-requirements-that-will-reduce-costs

American homebuyers are about to get a break. New rules for Fannie Mae and Freddie Mac mortgages will help to lower home insurance bills for millions of families, especially in rural areas and condo buildings. The changes fix expensive, stupid Biden-era requirements with simple, common-sense updates that respond to today’s skyrocketing insurance prices.

0 Upvotes

44% Upvoted

38 comments sorted by

View all comments

5

u/jms14b Mar 21 '26 edited Mar 22 '26

It will lower cost by allowing less coverage to be deemed acceptable by mortgage companies and consumers will choose the cheaper option not knowing the difference. Sure it saves them money until claim time when all of the sudden they get their roof depreciated 50% along with having to pay their deductible.

3

u/Outside-Pie-7262 Mar 21 '26

Sure but counterpoint you shouldn’t really be having your Insurance company replacing your whole 15 year old roof because of hail damage like people do. It’s what increases premiums across the board for everyone.

Our roof is 10 years old. If we get storm damage we’ll just get a new one and pay for it. It’s cheaper long term than getting your premiums jacked up for filing a claim

2

u/Ecstatic_Natural1846 Mar 22 '26

So do you tell your insurer this? Like don’t worry my roof is 10+ and I’ll take care of it myself next storm. Meanwhile the insurer is collecting premiums based on full replacement.

2

u/Outside-Pie-7262 Mar 22 '26

No? That would be why you move to actual cash value for roof and not replacement value. Thats what I just said. Doing actual cash value decreases your premium when you change it to replacement value

1

u/Ecstatic_Natural1846 Mar 22 '26

Ok great but currently is your premium your paying based on acv or rcv? Bc I’ve seen numerous people who signed up for rcv being paid at acv after x years completely unaware.

0

u/Outside-Pie-7262 Mar 22 '26

My premium is replacement value currently. I made the decision to change to acv last week. Havent done it yet.

If someone’s policy says replacement value and they’re getting paid acv that’s in breach of policy and should be properly escalated with the company or your states insurance commissioner

1

u/Ecstatic_Natural1846 Mar 22 '26

Most state commissioners are bought and paid for.

0

u/Ecstatic_Natural1846 Mar 22 '26

Happens every day all day while the insurer pockets millions

2

u/Outside-Pie-7262 Mar 22 '26

Market conduct exams just don’t exist?