Fannie Mae, Freddie Mac Ease Homeowners Insurance Requirements

Home insurance surged an average of 12 percent in the United States last year.

Homes await buyers in the city of Irvine, Calif., on Sept. 21, 2020. John Fredricks/The Epoch Times

Fannie Mae and Freddie Mac unveiled new rules for mortgages that will help in reducing homeowners insurance bills for millions in American families, especially in condos and rural areas, the Federal Housing Finance Agency (FHFA) said in a March 18 statement.

According to the agency, which is responsible for the overall management of Fannie Mae and Freddie Mac, a key change relates to Actual Cash Value (ACV) and Replacement Cost Value (RCV) coverage for homes.