source:
  type: guide
  id: fnma-sel-b7-3-04
  authority: Fannie Mae Selling Guide B7-3-04 — Individual Property Insurance Requirements
    for a Unit in a Project Development
  description: Fannie Mae Selling Guide B7-3-04 — Individual Property Insurance Requirements
    for a Unit in a Project Development.
  coverage_tier: operative
obligations:
- id: fnma-sel-b7-3-04-full
  canonical_id: fnma-sel-b7-3-04-full
  section: Fannie Mae Selling Guide B7-3-04 — Individual Property Insurance Requirements
    for a Unit in a Project Development
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B7-3-04 — Individual Property Insurance Requirements
      for a Unit in a Project Development
    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: 'B7-3-04, Individual Property Insurance Requirements for a Unit
      in a Project Development (12/14/2022) Introduction This topic contains information
      on property insurance requirements for units in project developments, including:
      Overview Determining if an Individual Property Insurance Policy on a Unit in
      a Project Development is Required Coverage Requirements Determining the Required
      Coverage Amount Deductible Requirements Overview See Overview in B7-3-03, Master
      Property Insurance Requirements for Project Developments for additional information.
      Determining if an Individual Property Insurance Policy on a Unit in a Project
      Development is Required See Determining if a Master Property Insurance Policy
      is Required in B7-3-03, Master Property Insurance Requirements for Project Developments
      for determining when a master property insurance policy and/or an individual
      property insurance policy is required. Published May 6, 2026 869 Coverage Requirements
      See Coverage Requirements in B7-3-02, Property Insurance Requirements for One-to
      Four-Unit Properties, for the coverage requirements when an individual property
      insurance policy is required for a unit in a project development. See B7-3-08,
      Mortgagee Clause, Named Insured, and Notice of Cancellation Requirements for
      requirements applicable to a loan secured by a unit in a project development.
      Determining the Required Coverage Amount To the extent the master property insurance
      policy does not cover the interior or improvements of a unit in a project development,
      the borrower must maintain an individual property insurance policy. The lender
      or servicer must verify the coverage amount is suﬃcient to restore the unit
      to its condition prior to a loss event. Coverage suﬃciency should be based on
      the best information known or available to the lender or servicer, which may
      include information obtained from the borrower, in collaboration with the insurer,
      the HOA or co-op corporation legal documents, or other professional with appropriate
      resources to make such a determination. Fannie Mae recommends that lenders and
      servicers encourage borrowers to closely collaborate with an insurance professional
      to determine their individual insurance needs. Deductible Requirements See Deductible
      Requirements in B7-3-02, Property Insurance Requirements for One-to Four-Unit
      Properties for deductible requirements when an individual property insurance
      policy is required for a unit in a project development. 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 Announcement SEL-2021-11 December 15, 2021 Published May 6, 2026 870'
  judgment: false
