Skip to main content
Search the Guide:

B-2-03, Master Property Insurance Requirements for Project Developments (02/14/2024)

This topic contains the following:


This topic describes additional requirements only applicable to servicers. Refer to Selling Guide B7-3-03, Master Property Insurance Requirements for Project Developments for property insurance requirements for project developments, including

  • determining if a master property insurance policy is required,
  • coverage requirements,
  • determining the required coverage amount,
  • deductible requirements,
  • special coverage requirements for project developments,
  • special coverage requirements for condo projects,
  • builder/developer property insurance policies, and
  • policies covering multiple projects.

Acceptable Evidence of Master Property Insurance Policies

The servicer must ensure on an annual basis that the master insurance coverage maintained for a PUD, condo, or co-op project meets the requirements outlined in this Servicing Guide.

Refer to Selling Guide B7-3-07, Evidence of Property Insurance for acceptable evidence of master insurance policies. Acceptable evidence of master insurance coverage for a unit in a PUD, condo, or co-op project includes either:

  • a copy of the current master policy and any endorsements, and a certificate of insurance showing the individual unit securing the mortgage loan is covered under the policy;

  • a blanket insurance policy which covers every project in which the servicer services Fannie Mae mortgage loans, with premiums borne by the servicer as a corporate expense; or

  • an insurance policy maintained by the servicer which provides ”walls-in” coverage as well as loss assessment coverage as needed in the event of an uninsured loss for all Fannie Mae PUD, condo, or co-op mortgage loans serviced by the servicer.

In accordance with Selling Guide A2-1-03, Indemnification for Losses, the servicer must indemnify Fannie Mae in the event that the servicer's use of an insurance product does not provide sufficient coverage. In no event shall a servicer's obligation to Fannie Mae thereunder be limited to the amount of coverage in force under an insurance product that it has selected or obtained.

Recent Related Announcements

The table below provides references to recently issued Announcements that are related to this topic.

Announcements Issue Date
Announcement SVC-2024-01 February 14, 2024
Announcement SVC-2022-08 December 21, 2022
Announcement SVC-2021-09 December 8, 2021