Federal regulators have adjusted property insurance requirements while insurers are rolling out new mitigation tools, signaling a combined effort to address coverage constraints and rising costs in the US housing market.
The American Property Casualty Insurance Association (APCIA) offered its support to updates issued by the Federal Housing Finance Agency (FHFA), alongside Fannie Mae and Freddie Mac, which revise property insurance requirements and condominium project standards following industry feedback on cost and availability pressures.
Regulatory updates focus on easing requirements that lenders and servicers had flagged as difficult to implement following 2024 guidance. According to FHFA, the revisions remove certain provisions that had increased insurance costs and limited options for borrowers, particularly in condominium markets and rural areas.
Both Fannie Mae and Freddie Mac stated the changes respond to rising premiums and constrained insurance availability, conditions that have affected borrowers and homeowners’ associations in multiple regions.
Among the updates:
These adjustments align across both enterprises and aim to provide flexibility while maintaining minimum coverage standards.
Freddie Mac also noted that named storms designated by the National Weather Service, or NOAA, must remain included in windstorm coverage, while deductible limits for required perils cannot exceed 5% of coverage limits.
Changes extend beyond insurance to condominium project eligibility and financial requirements. Both enterprises cited a link between underfunded reserves and properties requiring critical repairs, which can lead to financial strain for unit owners and increased risk of default.
Updated policies include:
Freddie Mac stated that these revisions are intended to improve the financial condition of condominium projects and support long-term sustainability.
APCIA said the revisions may reduce costs and remove barriers for homeowners and buyers.
“These changes are an important step toward lowering homeownership costs and removing unnecessary barriers for homeowners and homebuyers. By rolling back unworkable insurance requirements, FHFA, Fannie Mae, and Freddie Mac have taken a commonsense approach that better reflects today’s insurance markets while maintaining appropriate consumer protections,” said Karen Collins, APCIA vice president of property and environmental.
The group said engagement between regulators and industry participants following the February 2024 guidance helped identify requirements contributing to higher costs and reduced availability.
“We appreciate FHFA’s willingness – along with Fannie Mae and Freddie Mac – to engage directly with insurers and other stakeholders to better understand the real-world impacts of the February 2024 guidance. That engagement was critical in recognizing how certain requirements were contributing to higher costs, reduced coverage availability, and unintended challenges for condominiums and other properties,” Collins said.
Separately, APCIA has introduced My Resilient Home, a digital platform designed to provide homeowners with steps to reduce wildfire risk and limit losses.
The site includes home hardening guidance, interactive tools, current information and a quiz that helps users assess vulnerabilities.
“Homeowners are looking for trustworthy, accessible guidance on how to make their properties more resilient,” Collins said. “My Resilient Home delivers exactly that - clear, practical steps families can take to live with wildfire risk while helping protect their home, their community, and their financial security.”
APCIA said mitigation measures can influence loss outcomes and affect access to insurance coverage.
“Taking proactive steps to harden a home makes it more likely to survive a wildfire, reduces damage severity, and supports a more stable insurance market overall,” Collins said.
The platform outlines actions such as clearing defensible space, replacing wood fencing with metal and reinforcing roofs and vents.
“By taking small, meaningful actions - like clearing defensible space, replacing wood fences with metal and hardening roofs and vents - homeowners can dramatically improve their home’s ability to withstand ignition from wildfire,” Collins said. “My Resilient Home is built to make these steps straightforward, accessible, and achievable for every family.”
APCIA represents home, auto and commercial insurers operating across the US.
