{
  "$schema": "https://bestinsuranceresearch.com/llms-full.txt",
  "recordType": "source",
  "id": "fnma-b7-3-02",
  "canonicalUrl": "https://bestinsuranceresearch.com/sources/fnma-b7-3-02",
  "contentVersion": "2026.08.31",
  "generatedFor": "2026-09-06",
  "operator": {
    "legalName": "WJB Services, Inc.",
    "dba": "Bollinsure Insurance Services",
    "license": "6013787",
    "licenseAuthority": "California Department of Insurance"
  },
  "license": "Text on this page may be quoted with attribution and a link to the canonical URL.",
  "notice": "Public page facts only. This record contains no visitor question, no tool input, and no identifier. It is not a coverage determination, an eligibility decision, or individualized advice.",
  "title": "Selling Guide B7-3-02, Property Insurance Requirements for One- to Four-Unit Properties",
  "publisher": "Fannie Mae",
  "url": "https://selling-guide.fanniemae.com/sel/b7-3-02/property-insurance-requirements-one-four-unit-properties",
  "officialHost": true,
  "sourceType": "official-documentation",
  "authorityLevel": "standards-body",
  "primary": true,
  "jurisdiction": "US",
  "publishedDate": "unknown",
  "effectiveDate": "unknown",
  "accessedDate": "2026-08-31",
  "lastChecked": "2026-08-31",
  "updateCadence": "Fannie Mae updates the Selling Guide on a roughly monthly announcement cycle.",
  "status": "active",
  "supportsClaims": [
    {
      "claimId": "fnma-b7-3-02#c1",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/fnma-b7-3-02#c1",
      "checksum": "5c3041565b7a",
      "text": "Property insurance policies for one- to four-unit properties securing loans purchased by Fannie Mae should be written on a Special coverage form or equivalent. The page states this in should form, not as an absolute must."
    },
    {
      "claimId": "fnma-b7-3-02#c2",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/fnma-b7-3-02#c2",
      "checksum": "51c7836ebcb5",
      "text": "The property insurance policy must provide coverage on a replacement cost basis, with the exception of roofs, and policies providing such terms of coverage will be deemed to provide sufficient coverage."
    },
    {
      "claimId": "fnma-b7-3-02#c3",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/fnma-b7-3-02#c3",
      "checksum": "61e6831f7429",
      "text": "Roofs must be insured, but do not have to be insured on a replacement cost basis."
    },
    {
      "claimId": "fnma-b7-3-02#c4",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/fnma-b7-3-02#c4",
      "checksum": "3db5496b4b5b",
      "text": "The maximum allowable deductible for all required property insurance perils for one- to four-unit properties is 5 percent of the property insurance coverage amount, and where a policy includes separate deductibles for different required perils, each individual deductible must not exceed 5 percent of the property insurance coverage amount."
    },
    {
      "claimId": "fnma-b7-3-02#c5",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/fnma-b7-3-02#c5",
      "checksum": "891f63192216",
      "text": "The required perils listed are fire or lightning, explosion, windstorm including named storms, hail, smoke, aircraft, vehicles, and riot or civil commotion."
    },
    {
      "claimId": "fnma-b7-3-02#c6",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/fnma-b7-3-02#c6",
      "checksum": "7a41f9fea24e",
      "text": "If a property insurance policy excludes or limits coverage of any of the required perils, the borrower must obtain an acceptable policy, for example a stand-alone policy, that provides adequate coverage for the limited or excluded peril."
    },
    {
      "claimId": "fnma-b7-3-02#c7",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/fnma-b7-3-02#c7",
      "checksum": "cfc5970edeb3",
      "text": "This section does not state a coverage amount formula tied to the unpaid principal balance of the loan."
    },
    {
      "claimId": "fnma-b7-3-02#c8",
      "canonicalUrl": "https://bestinsuranceresearch.com/sources/fnma-b7-3-02#c8",
      "checksum": "eeab17568bff",
      "text": "This section does not state flood insurance requirements and instead cross-references B7-3-06 for them, and it does not mention earthquake insurance."
    }
  ],
  "reliedOnBy": [
    {
      "kind": "Question",
      "title": "What does a lender insurance requirement actually prove?",
      "url": "https://bestinsuranceresearch.com/questions/lender-insurance-requirement"
    },
    {
      "kind": "Module",
      "title": "Residential Property Position (2 checks)",
      "url": "https://bestinsuranceresearch.com/tools/property-position"
    }
  ],
  "reliedOnByCount": 2,
  "citation": {
    "text": "Fannie Mae. \"Selling Guide B7-3-02, Property Insurance Requirements for One- to Four-Unit Properties.\" unknown. https://selling-guide.fanniemae.com/sel/b7-3-02/property-insurance-requirements-one-four-unit-properties (retrieved 2026-08-31).",
    "viaThisSite": "BestInsurance Research source record fnma-b7-3-02, content version 2026.08.31. https://bestinsuranceresearch.com/sources/fnma-b7-3-02",
    "note": "Cite the underlying source when you can. Cite this record when you are describing our synthesis or our claim list."
  }
}