source:
  type: guide
  id: fnma-sel-b7-4-01
  authority: Fannie Mae Selling Guide B7-4-01 — General Liability Insurance Requirements
    for Project Developments
  description: Fannie Mae Selling Guide B7-4-01 — General Liability Insurance Requirements
    for Project Developments.
  coverage_tier: operative
obligations:
- id: fnma-sel-b7-4-01-full
  canonical_id: fnma-sel-b7-4-01-full
  section: Fannie Mae Selling Guide B7-4-01 — General Liability Insurance Requirements
    for Project Developments
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B7-4-01 — General Liability Insurance Requirements
      for Project Developments
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B7-4-01, General Liability Insurance Requirements for Project
      Developments (12/14/2022) Introduction This topic contains information on general
      liability insurance requirements, including: Determining if General Liability
      Insurance is Required Coverage Requirements Determining the Required Coverage
      Amount Named Insured Determining if General Liability Insurance is Required
      General liability insurance is required for all condo and co-op projects, with
      the following exceptions: projects that qualify for a waiver of project review
      as described in B4-2.1-02, Waiver of Project Review, or condo projects reviewed
      under the Limited Review method as described in B4-2.2-01, Limited Review Process.
      Coverage Requirements When required, the HOA or co-op corporation must maintain
      a general liability insurance policy for the entire project. The general liability
      insurance policy must include coverage for: commercial spaces that are owned
      by the HOA or co-op corporation, even if they are leased to others, and bodily
      injury and property damage that results from the operation, maintenance, or
      the use of the project''s common elements, and any other areas that are under
      its supervision. The general liability insurance policy must include a separation
      of insureds or severability of interests provision in its terms. If the policy
      does not include separation of insureds or severability of interests in its
      terms, Fannie Mae requires a speciﬁc endorsement to preclude the insurer''s
      denial of a unit owner''s claim because of negligent acts of the HOA or co-op
      corporation or of other unit owners. Determining the Required Coverage Amount
      The amount of coverage must be at least $1 million for bodily injury and property
      damage for any single occurrence. Named Insured The general liability insurance
      policy must designate the HOA or co-op corporation as the named insured with
      Published May 6, 2026 886 the premiums paid as a common expense by the HOA or
      co-op corporation. Recent Related Announcements The table below provides references
      to recently issued Announcements that are related to this topic. Announcements
      Issue Date Announcement SEL-2022-10 December 14, 2022'
  judgment: false
