source:
  type: regulation
  id: fhlmc-4703.1
  authority: Freddie Mac Single-Family Seller/Servicer Guide §4703.1 — General property insurance requirements (07/09/25)
  description: "Freddie Mac Guide §4703.1 (General property insurance requirements). Gap-fill (verbatim, ID-diff).\
    \ \n"
obligations:
- id: fhlmc-4703.1-0
  canonical_id: fhlmc-4703.1-0
  section: Freddie Mac Guide 4703.1
  description: '4703.1 General property insurance requirements: (07/09/25) For Mortgages sold to Freddie Mac, the
    Seller must ensure that the Mortgaged Premises are covered by insurance meeting the requirements in this Chapter
    4703. The Seller must obtain evidence of insurance meeting the requirements of Section 8202.4. (a) Licensing
    of insur…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4703.1 — General property insurance requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '(07/09/25) For Mortgages sold to Freddie Mac, the Seller must ensure that the Mortgaged Premises
      are covered by insurance meeting the requirements in this Chapter 4703. The Seller must obtain evidence of
      insurance meeting the requirements of Section 8202.4. (a) Licensing of insurer All insurance companies (insurers)
      and insurance companies which guarantee coverages provided by other insurance companies (reinsurers) must
      be licensed, or otherwise authorized by law, to conduct business in the jurisdictions where the Mortgaged
      Premises are located. (b) Assessments Insurance contracts must provide that no assessment may be made against
      the Seller/Servicer or Freddie Mac and that any assessment made against others may not become a lien on the
      Mortgaged Premises superior to the lien of the Freddie Mac Mortgage. (c) Rating of insurer The required insurance
      must be provided by one of the following insurers: 1. An insurer with a current rating that meets the requirements
      below: ■ For an insurer rated by AM Best Company (AM Best), a minimum Financial Strength Rating of B+, as
      reported online at http://www.ambest.com ■ For an insurer rated by Demotech, Inc., a minimum Financial Stability
      Rating of A as reported online at http://www.demotech.com ■ For an insurer rated by S&P Global, a minimum
      Insurer Financial Strength Rating of BBB as reported online at http://www.standardandpoors.com ■ For an insurer
      rated by Kroll Bond Rating Agency (KBRA), a minimum Insurance Financial Strength Rating of BBB as reported
      online at https://www.kbra.com 2. An insurer with coverage that is guaranteed by a reinsurer under all of
      the following conditions:'
    drafter_attestation: Verbatim from Freddie Guide §4703.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4703.1-1
  canonical_id: fhlmc-4703.1-1
  section: Freddie Mac Guide 4703.1
  description: '4703.1 General property insurance requirements: 703-2 ■ The reinsurer’s current rating meets the
    requirements below: ❑ For a reinsurer rated by AM Best, a minimum Financial Strength Rating of B+; or ❑ For
    a reinsurer rated by S&P Global, a minimum Insurer Financial Strength Rating of BBB ■ The reinsurer assumes
    by endorsement …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4703.1 — General property insurance requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '703-2 ■ The reinsurer’s current rating meets the requirements below: ❑ For a reinsurer rated
      by AM Best, a minimum Financial Strength Rating of B+; or ❑ For a reinsurer rated by S&P Global, a minimum
      Insurer Financial Strength Rating of BBB ■ The reinsurer assumes by endorsement 100% of the insurer’s liability
      for any covered loss payable but unpaid by the insurer for reason of insolvency ■ The reinsurer assumes by
      endorsement to give the policyholder, the Seller/Servicer and insurer 90-day written notice before canceling
      or otherwise terminating the guarantee ■ The above endorsements are attached to each property insurance policy
      accepted by the Seller/Servicer on account of the endorsements 3. A state insurance pool created by statutory
      authority to provide insurance for geographic areas or insurance lines which suffer from lack of voluntary
      market availability (such pool may be designated as a property insurance plan, a Fair Access to Insurance
      Requirements (FAIR) plan, an underwriting association, a joint underwriting association or an insurance authority)
      4. A non-admitted insurer with a current rating that meets the requirements below: ■ For an insurer rated
      by AM Best, a minimum Financial Strength Rating of A, or ■ For an insurer rated by S&P Global, a minimum Insurer
      Financial Strength Rating of AA- 5. An insurer with coverage that is guaranteed by the National Flood Insurance
      Program (NFIP) under a Standard Flood Insurance Policy issued pursuant to the National Flood Insurance Act
      of 1968, as amended Insurers rated by more than one rating company need only meet one of the rating requirements.'
    drafter_attestation: Verbatim from Freddie Guide §4703.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4703.1-2
  canonical_id: fhlmc-4703.1-2
  section: Freddie Mac Guide 4703.1
  description: '4703.1 General property insurance requirements: Minimum property insurance types and amounts (05/06/26)
    (a) 1- to 4-unit properties (i) Peril requirements At a minimum, the insurable improvements on the Mortgaged
    Premises must be insured for loss or damage from: ■ Fire ■ Lightning ■ Windstorm (including named storms designated…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4703.1 — General property insurance requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: 'Minimum property insurance types and amounts (05/06/26) (a) 1- to 4-unit properties (i) Peril
      requirements At a minimum, the insurable improvements on the Mortgaged Premises must be insured for loss or
      damage from: ■ Fire ■ Lightning ■ Windstorm (including named storms designated by the U.S. National Weather
      Service or the National Oceanic and Atmospheric Administration by a name or number) ■ Hail ■ Explosion ■ Riot
      ■ Civil commotion ■ Aircraft ■ Vehicles ■ Smoke If any of the preceding perils is excluded from the primary
      insurance policy, coverage of the excluded peril must be provided through a secondary insurance policy. (ii)
      Deductible requirements The deductible(s) for the above perils may not exceed 5 percent of the limit maintained
      for dwelling coverage. (iii) Coverage sufficiency requirements The property securing the Mortgage must be
      covered by an insurance policy that provides for coverage on a replacement cost basis, excluding roofs.'
    drafter_attestation: Verbatim from Freddie Guide §4703.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4703.1-3
  canonical_id: fhlmc-4703.1-3
  section: Freddie Mac Guide 4703.1
  description: '4703.1 General property insurance requirements: 703-4 Note: Roofs must be insured but do not have
    to be covered on a replacement cost basis. Note: Freddie Mac recognizes that some insurers may issue policies
    that provide coverage on an actual cash value basis for personal property and structures that are not buildings.
    In the …'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4703.1 — General property insurance requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '703-4 Note: Roofs must be insured but do not have to be covered on a replacement cost basis.
      Note: Freddie Mac recognizes that some insurers may issue policies that provide coverage on an actual cash
      value basis for personal property and structures that are not buildings. In the event that the Seller or Servicer
      sees such terms in a property insurance policy covering a 1- to 4-unit property, this is acceptable. The Seller/Servicer
      must ensure that adequate insurance coverage is in force even when the improvements are vacant or unoccupied
      and must notify all insurers of any such change in occupancy in order to preserve its rights as mortgagee
      under the applicable insurance policy. (b) Planned Unit Developments (PUDs) and ground lease communities Unit
      owners within a PUD and leasehold lessees within a ground lease community with residential properties similar
      to 1- to 4-unit properties can insure their units individually, provided that the requirements in Section
      4703.2(a) are met. If the individual units are covered by insurance purchased by their respective owners or
      leasehold lessees, the PUD homeowners association or the fee simple landowner/lessor of the ground lease community,
      the Seller is not required to verify insurance for its Common Elements. Freddie Mac will also accept a master
      insurance policy covering all units in the PUD or ground lease community if called for in the PUD’s governing
      documents or in the ground lease. The master policy must meet all of the following requirements. See Section
      4703.2(e) for HO-6 policy requirements. (i) Coverage sufficiency requirements The master property insurance
      policy limit must be at least equal to 100% of the units’ replacement cost value (RCV) estimate. Seller/Servicers
      are not required to verify if a master insurance policy for a PUD or ground lease community provides insurance
      for Common Elements. Seller/Servicers may rely on one of the following options to evidence 100% RCV coverage
      for the units: ■ The insurance policy includes a guaranteed replacement cost (GRC), or equivalent endorsement,
      or ■ The insurance policy includes an extended replacement cost (ERC), or equivalent endorsement, or ■ The
      RCV estimate amount utilized by the insurance carrier to determine coverage limits, or ■ The project''s insurance
      risk appraisal, or'
    drafter_attestation: Verbatim from Freddie Guide §4703.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4703.1-4
  canonical_id: fhlmc-4703.1-4
  section: Freddie Mac Guide 4703.1
  description: '4703.1 General property insurance requirements: 703-5 ■ A statement from a property insurer, an
    independent insurance risk specialist, or other professional with appropriate expertise to make such a determination
    (ii) Loss settlement requirements The master property insurance policy must provide for coverage on a replacement
    c…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4703.1 — General property insurance requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '703-5 ■ A statement from a property insurer, an independent insurance risk specialist, or
      other professional with appropriate expertise to make such a determination (ii) Loss settlement requirements
      The master property insurance policy must provide for coverage on a replacement cost basis, excluding roofs.
      Note: Roofs must be insured but do not have to be covered on a replacement cost basis. Note: Freddie Mac recognizes
      that some insurers may issue policies that provide coverage on an actual cash value basis for personal property
      and certain property elements. In the event that the Seller or Servicer sees such terms in a master property
      insurance policy covering a Condominium Project, Cooperative Project or PUD, this is acceptable. (iii) Peril
      requirements The master property insurance policy must be written on a special coverage form or equivalent.
      (iv) Additional coverage requirements The PUD homeowners association or fee simple landowner/lessor must also
      obtain any additional coverage commonly required by private mortgage investors for developments similar in
      construction, location and use, including the following: ■ Building ordinance or law endorsement – this endorsement
      is not required if the building is legally conforming under current building, zoning or land use laws, or
      is not available; however, it is required if the enforcement of any law or ordinance results in increased
      costs such as demolition or loss to the undamaged portions of the building and the coverage is available in
      the insurance market ■ Steam boiler and machinery or equipment breakdown endorsement – this endorsement is
      required if a building in the project has a central heating ventilation and cooling (HVAC) system and the
      coverage is available in the insurance market. The insurance limit per covered mechanical breakdown or equipment
      failure must equal the lesser of: ❑ 100% of the replacement cost of the building housing the equipment, or
      ❑ $2 million (v) Deductible requirements'
    drafter_attestation: Verbatim from Freddie Guide §4703.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4703.1-5
  canonical_id: fhlmc-4703.1-5
  section: Freddie Mac Guide 4703.1
  description: '4703.1 General property insurance requirements: 703-6 The master property insurance policy deductible(s)
    for all perils required by Section 4703.2 may not exceed 5% of the limit maintained for building(s) coverage
    per occurrence. If a master insurance policy deductible exceeds the 5% maximum due to a per unit deductible
    for na…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4703.1 — General property insurance requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '703-6 The master property insurance policy deductible(s) for all perils required by Section
      4703.2 may not exceed 5% of the limit maintained for building(s) coverage per occurrence. If a master insurance
      policy deductible exceeds the 5% maximum due to a per unit deductible for named perils specific to a geographic
      area, the Mortgage is eligible for sale to Freddie Mac if the Borrower’s unit is covered by an owner''s HO-6
      policy. The Borrower’s owners policy must include the same perils as the master policy, cover master policy
      assessments levied on the unit owner and carry a sufficient coverage amount to cover the per unit amount over
      the permissible 5% limit. See Section 4703.2(c) below for an example of how to calculate sufficient coverage
      to meet the 5% maximum deductible requirement. The PUD homeowners association or fee simple landowner/lessor
      may purchase a deductible buy-back insurance policy to meet Freddie Mac''s deductible requirements, provided
      the policy meets all other applicable property insurance requirements in Chapter 4703. (vi) Named insured
      requirements The insurance policy of the PUD homeowners association or fee simple landowner/lessor of the
      ground lease community must name the insured in substantially the same language indicated below: For PUDs:
      Association of Owners of the [Name of PUD] Planned Unit Development for the use and benefit of the individual
      owners (designated by name, if required by law or the governing documents). For ground lease communities:
      [Name of the lessor] of the [Name of the ground lease community] for the use and benefit of the individual
      lessees (designated by name, if required by law or by the lease). (vii) Master or blanket insurance policy
      for multiple unaffiliated projects Mortgages secured by units in a PUD with a master or blanket insurance
      policy that combines insurance coverage for multiple unaffiliated PUDs are eligible for sale to Freddie Mac
      provided that each covered PUD has a dedicated policy limit and a specific dedicated deductible that does
      not exceed the requirements above. Also, the policy must clearly state that each association is a named insured.
      The policy limit needs to cover the full replacement cost required for the Common Elements, and to the extent
      required, the units. Additionally, the insurance policy must meet all requirements of the Guide and other
      Purchase Documents applicable to master insurance policies covering PUDs such as:'
    drafter_attestation: Verbatim from Freddie Guide §4703.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4703.1-6
  canonical_id: fhlmc-4703.1-6
  section: Freddie Mac Guide 4703.1
  description: '4703.1 General property insurance requirements: 703-7 ■ The insurance company underwriting the master
    policy must meet Freddie Mac insurance ratings requirements ■ The protected perils must include those normally
    covered in policies for similar types of PUDs; and ■ If applicable, the building ordinance or law endorsement
    and/o…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4703.1 — General property insurance requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '703-7 ■ The insurance company underwriting the master policy must meet Freddie Mac insurance
      ratings requirements ■ The protected perils must include those normally covered in policies for similar types
      of PUDs; and ■ If applicable, the building ordinance or law endorsement and/or equipment breakdown endorsement
      Projects that are under the same master association and/or share the use of common facilities, whether those
      facilities are individually owned or owned as part of a master association or development, are considered
      to be affiliated projects. Multiple projects that do not meet one of these criteria, even if they are under
      the management of the same management company, are not considered to be affiliated projects. (c) Condominiums
      The Project Documents will define the insurance requirements for the homeowners association and the individual
      unit owner in a Condominium Project, including a Detached Condominium Project and a 2- to 4-Unit Condominium
      Project. The insurance requirements will define the extent to which the homeowners association will insure
      the individual units and the unit owner responsibility for individual insurance. There are two acceptable
      options for unit coverage depending on what the governing documents indicate: ■ The condominium homeowners
      association must insure the building and structures in the Condominium Project as well as fixtures, machinery,
      equipment and supplies maintained for the service of the Condominium Project. To the extent required the homeowners
      association must also insure fixtures, improvements, alterations and equipment within the individual Condominium
      Units, regardless of ownership. To the extent the condominium homeowners association’s policy does not cover
      the interior of the Condominium Unit or the improvements to the Condominium Unit, the Borrower must maintain
      an HO-6 unit owner policy. See Section 4703.2(e) for HO-6 policy requirements. Coverage for the HO- 6 unit
      owner policy must be sufficient to repair the Condominium Unit to at least its condition prior to the claim.
      ■ If the Project Documents allow Condominium Unit owners to insure their Condominium Units individually, in
      lieu of a master policy, the Mortgages secured by the Condominium Units are eligible for sale to Freddie Mac
      provided the requirements in Section 4703.2(a) are met. Common Elements must be covered through the condominium
      homeowners association policy and the homeowners association must maintain all other applicable insurance
      coverages required in Chapter 4703.'
    drafter_attestation: Verbatim from Freddie Guide §4703.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4703.1-7
  canonical_id: fhlmc-4703.1-7
  section: Freddie Mac Guide 4703.1
  description: '4703.1 General property insurance requirements: 703-8 (i) Coverage sufficiency requirements The
    master property insurance policy coverage limit must be at least equal to 100% of the RCV estimate of the project''s
    improvements, including Common Elements and residential structures. Seller/Servicers may rely on one of the
    followin…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4703.1 — General property insurance requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '703-8 (i) Coverage sufficiency requirements The master property insurance policy coverage
      limit must be at least equal to 100% of the RCV estimate of the project''s improvements, including Common
      Elements and residential structures. Seller/Servicers may rely on one of the following options to evidence
      100% RCV coverage for the project’s improvements: ■ The insurance policy includes a GRC, or equivalent endorsement,
      or ■ The insurance policy includes an ERC, or equivalent endorsement, or ■ The RCV estimate amount utilized
      by the insurance carrier to determine coverage limits, or ■ The project’s insurance risk appraisal, or ■ A
      statement from a property insurer, an independent insurance risk specialist, or other professional with appropriate
      expertise to make such a determination (ii) Loss settlement requirements The master property insurance policy
      must provide for coverage on a replacement cost basis, excluding roofs. Note: Roofs must be insured but do
      not have to be covered on a replacement cost basis. Note: Freddie Mac recognizes that some insurers may issue
      policies that provide coverage on an actual cash value basis for personal property and certain property elements.
      In the event that the Seller or Servicer sees such terms in a master property insurance policy covering a
      Condominium Project, Cooperative Project or PUD, this is acceptable. (iii) Peril requirements The master property
      insurance policy must be written on a special coverage form or equivalent. (iv) Additional coverage requirements
      The condominium homeowners association must also obtain any additional coverage commonly required by private
      mortgage investors for developments similar in construction, location and use, including the following:'
    drafter_attestation: Verbatim from Freddie Guide §4703.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4703.1-8
  canonical_id: fhlmc-4703.1-8
  section: Freddie Mac Guide 4703.1
  description: '4703.1 General property insurance requirements: 703-9 ■ Building ordinance or law endorsement –
    this endorsement is not required if the building is legally conforming under current building, zoning or land
    use laws, or is not available; however, it is required if the enforcement of any law or ordinance results in
    increased cos…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4703.1 — General property insurance requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '703-9 ■ Building ordinance or law endorsement – this endorsement is not required if the building
      is legally conforming under current building, zoning or land use laws, or is not available; however, it is
      required if the enforcement of any law or ordinance results in increased costs such as demolition or loss
      to the undamaged portions of the building and the coverage is available in the insurance market ■ Steam boiler
      and machinery or equipment breakdown endorsement – this endorsement is required if a building in the project
      has an HVAC system and the coverage is available in the insurance market. The insurance limit per covered
      mechanical breakdown or equipment failure must equal the lesser of: ❑ 100% of the replacement cost of the
      building housing the equipment, or ❑ $2 million ■ Condominium Association Coverage Form or its equivalent,
      including the following provisions or comparable language: ❑ Recognition of an Insurance Trustee (e.g., “If
      you name an insurance trustee, we will adjust losses with you, but we will pay the insurance trustee. If we
      pay the trustee, the payments will satisfy your claims against us.”) ❑ Waiver of Rights of Recovery (e.g.,
      “We waive our rights to recover payment from any unit-owner of the condominium that is shown in the declarations.”)
      ❑ Unit-owner’s Insurance (e.g., “A unit-owner may have other insurance covering the same property as this
      insurance. This insurance is intended to be primary, and not to contribute with such other insurance.”) (v)
      Deductible requirements The master property insurance policy deductible(s) for all perils required by Section
      4703.2 may not exceed 5% of the limit maintained for building(s) coverage per occurrence. If the deductible
      exceeds the 5% maximum due to a per unit deductible for named perils specific to a geographic area, the Mortgage
      is eligible for sale to Freddie Mac if the Borrower’s unit is covered by an owner’s HO-6 policy. The Borrower’s
      owner’s policy must include the same perils as the condominium association’s master policy, cover master policy
      assessments levied on the unit owner and carry a sufficient coverage amount to cover the per unit amount over
      the permissible 5% limit. For example:'
    drafter_attestation: Verbatim from Freddie Guide §4703.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
- id: fhlmc-4703.1-9
  canonical_id: fhlmc-4703.1-9
  section: Freddie Mac Guide 4703.1
  description: '4703.1 General property insurance requirements: 703-10 ■ Condominium association policy limit: $6,000,000
    ■ Number of units: 20 ■ Condominium association policy deductible: $80,000 ■ Condominium association separate
    per unit deductible for ice dam coverage: $40,000 The master deductible of $80,000 is 1.33% of the building
    cove…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - fhlmc-guide
  - section-complete
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide §4703.1 — General property insurance requirements
      (07/09/25)
    source_class: gse-guide
    source_url: https://guide.freddiemac.com/
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '703-10 ■ Condominium association policy limit: $6,000,000 ■ Number of units: 20 ■ Condominium
      association policy deductible: $80,000 ■ Condominium association separate per unit deductible for ice dam
      coverage: $40,000 The master deductible of $80,000 is 1.33% of the building coverage ($80,000/$6,000,000)
      and does not exceed the 5% deductible requirement. However, the per unit deductible is 13.3% (($40,000 x 20
      units)/$6,000,000) which is above the 5% maximum requirement and the policy is not acceptable. The maximum
      per unit deductible needed to meet the 5% deductible requirement is $15,000 (($6,000,000/20) x .05). To be
      eligible, the unit owner needs an HO-6 policy that would cover the $25,000 per unit coverage ($40,000 − $15,000
      = $25,000). The condominium homeowners association may purchase a deductible buy-back insurance policy to
      meet Freddie Mac''s deductible requirements, provided the policy meets all other applicable property insurance
      requirements in Chapter 4703. (vi) Named insured requirements The insurance policy of the condominium homeowners
      association must name the insured in substantially the same language indicated below: Association of Owners
      of the [Name of Condominium Project] Condominium for the use and benefit of the individual owners (designated
      by name, if required by law or the governing documents). In the event the HO-6 unit owner policy is required,
      the policy must include the standard Mortgage clause required in Section 4703.6. (vii) Master or blanket insurance
      policy for multiple unaffiliated projects Mortgages secured by a Condominium Unit in a Condominium Project
      with a master insurance policy that combines insurance coverage for multiple unaffiliated Condominium Projects
      are eligible for sale to Freddie Mac provided that each covered Condominium Project has a dedicated policy
      limit and a specific dedicated deductible that does not exceed the requirements above. Also, the policy must
      clearly state that each association is a named insured. The policy limit must cover the full replacement cost
      of the Common Elements, and to the extent required, the Condominium Units, as of the current insurance policy
      effective date. Additionally, the insurance policy must meet all requirements of Chapter 4703 of the Guide
      and other Purchase Documents applicable to master insurance policies covering Condominium Projects such as:'
    drafter_attestation: Verbatim from Freddie Guide §4703.1 body (max-gap occurrence), snapshot 5869ee9e606cd4ae;
      substring-verified.
  judgment: false
