--- title: "A New Federal Rule Lets Insurers Shift Roof Costs to Homeowners. What to Know" description: "A March 2026 change by Fannie Mae and Freddie Mac no longer requires full replacement-cost coverage on roofs — opening the door for insurers to pay only a roof's depreciated value. It may trim premiums, but it can leave homeowners owing thousands after a storm. Here's how to check where you stand." category: "Personal Finance" category_url: https://boursel.com/category/personal-finance author: "Sofia Marchetti" published: 2026-06-29T15:44:20.000Z updated: 2026-06-29T15:44:20.000Z canonical: https://boursel.com/article/a-new-federal-rule-lets-insurers-shift-roof-costs-to-homeowners-what-to-know tags: ["home-insurance", "homeowners", "roof", "fhfa", "personal-finance"] --- # A New Federal Rule Lets Insurers Shift Roof Costs to Homeowners. What to Know A March 2026 change by Fannie Mae and Freddie Mac no longer requires full replacement-cost coverage on roofs — opening the door for insurers to pay only a roof's depreciated value. It may trim premiums, but it can leave homeowners owing thousands after a storm. Here's how to check where you stand. A quiet change in mortgage rules could cost homeowners a lot of money the next time a storm damages their roof. On **March 18, 2026**, the **Federal Housing Finance Agency (FHFA)** said **Fannie Mae and Freddie Mac** — the entities that stand behind most US mortgages — will **no longer require full replacement-cost coverage on roofs**, and will accept cheaper **actual cash value** coverage instead, [the agency announced](https://www.fhfa.gov/news/news-release/fannie-mae-and-freddie-mac-remove-certain-homeowners-insurance-requirements-that-will-reduce-costs). The rest of the house still gets full replacement-cost protection. Because lenders' requirements effectively set the floor for what insurance most borrowers carry, loosening that floor lets insurers offer — and steer customers toward — **policies that pay much less than a new roof costs**. ## RCV vs. ACV: the difference that matters Two terms decide how much you collect after roof damage: - **Replacement Cost Value (RCV):** pays what it costs to install a **new** roof today, with no deduction for age or wear (you still owe your deductible). - **Actual Cash Value (ACV):** pays what your roof is **worth today** — the replacement cost **minus depreciation** for its age and condition, [as Bankrate explains](https://www.bankrate.com/insurance/homeowners-insurance/roof-insurance-acv-versus-replacement-cost/). The gap can be large. Take a roof that would cost **$20,000** to replace but is **10 years old**: under an ACV policy, depreciation might cut the payout to roughly half — and after your deductible, you could be left covering **$10,000 or more** yourself. (The exact numbers depend on your policy and the adjuster's depreciation estimate; this is an illustration, not a quote.) ## Watch for these policy features Insurers use several tools that push roof costs onto you: - **Roof payment schedules:** a sliding scale by age — a new roof might be covered at 100%, dropping in steps as it ages, so an older roof pays only a fraction. - **Percentage deductibles:** instead of a flat $500–$1,000, many policies now use a **deductible of 1%–5% of the home's insured value**. On a $300,000 home, a 2% deductible is **$6,000** before coverage kicks in. - **Separate wind/hail deductibles:** storm damage is often subject to its **own** percentage deductible, on top of the roof-coverage rules above. ## Why this is happening now The backdrop is a **home-insurance squeeze**. Severe storms — especially **hail**, an increasingly costly and frequent peril that now causes billions of dollars in insured losses each year — have driven big claims, and roof claims are a major piece. With roof replacements running anywhere from about **$5,000 to $30,000-plus**, insurers in hard-hit states have raised premiums, tightened roof terms, or pulled back entirely. In **Florida**, average premiums have climbed to among the highest in the nation, and carriers have exited several high-risk markets, [as CNBC has reported](https://www.cnbc.com/2024/07/02/florida-california-insurance-crisis-spreading-your-state-next.html). ## What to do — practical steps This isn't advice on which policy to buy, just how to know where you stand: - **Read your declarations page.** Find whether your roof is covered at **RCV, ACV, or on a payment schedule** — and ask your agent directly if it isn't clear. - **Calculate your real deductible.** If it's a percentage (especially for wind/hail), work out the dollar figure for your home's insured value so a storm isn't a surprise. - **Document the roof now.** Photos of its age and condition help support a claim later. - **Weigh the trade-off.** A cheaper ACV policy lowers your premium today but raises your **out-of-pocket exposure** after damage; a newer roof can sometimes earn discounts. ## The bottom line The rule was billed as a way to **reduce insurance costs**, and premiums for some borrowers may indeed ease. But the savings come with a shift in risk: less is guaranteed from the insurer, and **more falls on the homeowner** when a roof actually needs replacing. Heading into hail and hurricane season, the cheapest policy on paper may be the most expensive one after the next storm — which is why it pays to know exactly what your roof coverage says before you need it. ## Sources - [Fannie Mae and Freddie Mac remove certain homeowners insurance requirements](https://www.fhfa.gov/news/news-release/fannie-mae-and-freddie-mac-remove-certain-homeowners-insurance-requirements-that-will-reduce-costs) - [Roof insurance: actual cash value versus replacement cost](https://www.bankrate.com/insurance/homeowners-insurance/roof-insurance-acv-versus-replacement-cost/)