The Federal Housing Finance Agency announced coordinated changes on March 18, 2026. Fannie Mae and Freddie Mac implemented the changes through their own selling and servicing guides, so the rules mainly affect mortgages eligible for sale to or servicing under those two companies. They do not directly govern every mortgage or insurance policy in the United States.

Roofs no longer have to use replacement-cost coverage

For eligible one- to four-unit properties, the roof still must be insured, but the policy no longer has to cover the roof on a replacement-cost basis under the revised Fannie Mae and Freddie Mac requirements. The broader property generally must still meet replacement-cost standards, and other requirements for covered perils, insurer eligibility and deductibles remain in place.

The same basic exception applies to condominium, cooperative and comparable project master policies: the roof must be insured, but it does not have to be settled on a replacement-cost basis. The master policy generally must still provide replacement-cost coverage for the project improvements apart from roofs.

Actual cash value is generally the replacement cost of an item minus depreciation. That means an older roof may generate a much smaller claim payment than a replacement-cost policy would provide.

For example, if a new roof costs $20,000 but the insurer values the existing roof at $8,000 after depreciation, an actual-cash-value claim could leave the owner responsible for the remaining cost, plus any deductible. The actual settlement depends on the policy language, the roof’s age and condition, the insurer’s valuation and the applicable deductible.

The agencies permit this coverage; they do not require insurers to offer it or guarantee that premiums will fall. Pricing and availability will continue to depend on the insurer, state market, property location, roof age, underwriting and the coverage selected.

Condo master-policy deductibles can reach $50,000 per unit

For required property-insurance perils, the new rules set a maximum allowable master-policy deductible of $50,000 per unit. The figure is a ceiling, not a required deductible and not a limit that every condominium association must use.

Fannie Mae says lenders must apply the revised per-unit deductible rule to loan applications dated on or after July 1, 2026. Freddie Mac uses July 1, 2026, for mortgages with application received dates on or after that date, while encouraging sellers to implement the change earlier.

Other deductible rules continue to matter. Freddie Mac’s bulletin says a master-policy deductible for required perils generally may not exceed 5% of the building coverage limit per occurrence. Associations and lenders must therefore review the deductible structure rather than focusing only on the $50,000 per-unit ceiling.

Why HO-6 coverage may matter more

An individual condo owner generally must have an HO-6 unit-owner policy when the master policy does not cover all or part of the unit’s interior or improvements, or when the master policy includes a per-unit deductible.

Under the updated Fannie Mae and Freddie Mac standards, the HO-6 coverage limit must be at least the greater of the amount needed to restore uncovered interior portions and improvements or the applicable per-unit master-policy deductible. Freddie Mac also says the HO-6 policy must cover the applicable perils to which that master-policy deductible applies.

For example, if an association’s master policy has a $40,000 per-unit deductible for a covered peril, the unit owner may need an HO-6 policy with at least $40,000 in applicable coverage, assuming the policy and project documents otherwise require that protection. The owner should also confirm the policy’s own deductible and exclusions.

Buyers should request the association’s master-policy declarations, deductible schedule, certificate of insurance and coverage description before relying on the HOA’s policy. Governing documents may also determine which interior features are the owner’s responsibility.

What did not change

The revisions do not eliminate replacement-cost coverage for entire homes or condo buildings. In general, replacement-cost requirements still apply to the covered property and project improvements apart from roofs. Required perils, insurer standards, other deductible provisions, policy-monitoring duties and mortgage-servicing requirements also remain.

The changes also do not guarantee lower premiums. Insurance Journal reported that industry groups viewed the revisions as a response to affordability and availability concerns, particularly after earlier replacement-cost guidance affected insurance choices. That market reaction is not a promise of savings for any individual homeowner or association.

Consumer Reports’ general insurance guidance explains why actual-cash-value coverage can create higher out-of-pocket costs: depreciation is deducted from the claim payment. A lower premium should therefore be weighed against the amount an owner could need to pay after a roof loss.

Implementation dates to watch

Several related condominium rules are being phased in:

• Roof-related changes for one- to four-unit properties and project master policies took effect immediately under the March 18 Fannie Mae and Freddie Mac announcements.
• Fannie Mae’s per-unit deductible and individual-policy changes apply to applications dated on or after July 1, 2026. Freddie Mac applies related changes to mortgages with application received dates on or after July 1, 2026.
• Freddie Mac’s retirement of its Streamlined Review process and related reserve-study changes apply to applications received on or after August 3, 2026. Fannie Mae’s comparable project-review and reserve-study changes also require implementation for applications dated on or after August 3, 2026.
• Fannie Mae and Freddie Mac both set January 4, 2027, as the effective date for increasing the minimum condo replacement-reserve allocation from 10% to 15% of annual budgeted assessment income in the applicable review process.

Questions to ask before buying or refinancing

• Does the policy use replacement-cost or actual-cash-value coverage for the roof?
• What is the roof’s age, valuation method, depreciation schedule and deductible?
• For a condo or cooperative, what does the master policy cover, and what is the per-unit and per-occurrence deductible?
• Is an HO-6 policy required, and does its limit cover the applicable master-policy deductible and uncovered interior improvements?
• Does the HO-6 policy cover every peril to which the master-policy deductible applies?
• Has the lender or servicer confirmed that the policy meets the applicable Fannie Mae or Freddie Mac rules for the mortgage application date?

Homeowners and condo buyers should compare more than premiums. Roof settlement terms, deductibles, exclusions, limits and the likely out-of-pocket cost after a loss may matter more than the monthly price.

Sources

• FHFA policy announcement
• Fannie Mae Lender Letter LL-2026-03
• Freddie Mac Bulletin 2026-C
• Insurance Journal coverage

The California Department of Insurance announced the commitments July 23 under its Sustainable Insurance Strategy. The department described the development as an early sign that availability is improving, but that is the regulator’s assessment. The consumer test will be whether commitments become policies that homeowners can actually buy at terms they can afford.

What the insurers have committed to do

Liberty Mutual has asked the department to approve an expansion in wildfire-distressed areas without an additional rate increase for policyholders. The request remains pending and should not be treated as a completed expansion.

USAA plans to make homeowners coverage available to more military members and their families across California beginning in January 2027. That expansion is not available immediately. The department said USAA had previously received approval for an overall 6.9% rate increase.

MS Transverse Insurance Group, a new entrant to California’s homeowners market, received the department’s approval effective July 15, 2026. PURE also plans to expand its California homeowners business and identify high-value homes, including some currently insured through the non-admitted market or the FAIR Plan.

The department said the 11 groups committing to stay and grow include Farmers, Mercury, Auto Club of Southern California, CSAA, USAA, Liberty Mutual, Travelers, Pacific Specialty, California Casualty, Horace Mann and MS Transverse. The announcement also identified commercial expansion plans from Mercury and Zurich.

Those developments differ in status. An approved market entry, a planned future expansion and a pending request are not the same as policies issued, coverage transferred from the FAIR Plan or lower costs for existing customers.

FAIR Plan reliance remains a key measure

The department’s February 2026 market snapshot listed 668,609 FAIR Plan homeowner and commercial policies in December 2025. That combined figure should not be read as a homeowner-only count.

The snapshot also listed 8,300,730 admitted-market homeowner policies excluding FAIR Plan policies, 662 ZIP codes in distressed areas and average homeowners premiums of $1,571 in California compared with $1,512 nationally.

The same snapshot counted six homeowners insurance groups expanding in California under the Sustainable Insurance Strategy, compared with none in 2025. The department also said its review process had 28 homeowners rate filings under review in the first quarter of 2026.

Those figures show the scale of the market and the department’s regulatory activity, but they do not establish that the July commitments have reduced FAIR Plan enrollment or produced broad price relief. The premium comparison is a market snapshot; it is not directly interchangeable with independent research using a different dataset and time period.

Why more capacity does not automatically mean affordability

Stanford researchers found that average California homeowners insurance premiums rose 84% between the end of 2020 and March 2026. Average deductibles increased from $1,813 to $2,553 over the same period.

The Stanford research also found that the FAIR Plan covered about 5% of California single-family homes in March 2026, up from 1.5% in December 2020, and backed about 6% of new single-family mortgage originations. The study uses loan-level data and should be read as separate context rather than as a direct update to the department’s market snapshot.

That distinction matters because an insurer can re-enter or expand in a high-risk area while charging more, requiring a larger deductible or limiting coverage. More private-market capacity may improve access without restoring the prices and protections homeowners had before the recent insurance pullback.

Independent reporting by Axios has described the insurance strain as spreading beyond California’s highest wildfire-risk areas. The pressure affects homeowners, buyers, lenders and communities where insurance availability can influence whether a property transaction or mortgage proceeds.

What homeowners should watch next

The clearest signs of improvement will be actual growth in private-market policies outside the FAIR Plan, approved rates that do not erase the benefit of new capacity and sustained coverage availability in high-risk ZIP codes.

Homeowners seeking coverage should ask whether a quote comes from the admitted market, the FAIR Plan or a supplemental policy arrangement. They should compare deductibles, exclusions, replacement-cost limits, wildfire-mitigation discounts and additional-living-expense coverage—not only the annual premium.

California’s latest announcement may mark progress in rebuilding insurer participation, but it is not proof of lower costs or broader coverage yet. The next question is whether the commitments become durable policies and reduce FAIR Plan reliance without shifting more costs and risk onto consumers.

Sources

• California Department of Insurance: July 23 announcement on insurer expansion
• Stanford Woods Institute: California's home insurance crisis is spreading beyond wildfire country
• Axios San Francisco: California insurance woes spread beyond wildfire zones

The California Department of Insurance said July 23 that 11 homeowners insurance groups had committed to stay and grow in the state under its Sustainable Insurance Strategy. The announcement included a pending Liberty Mutual filing, a future USAA expansion, an approved market entry by MS Transverse and a planned expansion by PURE.

For residents, the key question is not simply whether a company has announced growth. It is whether that insurer is currently writing the needed coverage for a particular address, at what price and with what exclusions.

What changed in the California insurance market

Liberty Mutual requested the department’s approval to expand coverage in wildfire-distressed areas through independent agents and brokers without an additional rate increase for policyholders. The request remains subject to department review and is not an approved expansion.

USAA plans to broaden access to homeowners insurance for more military members and their families across California beginning in January 2027. The plan is future access, not a guarantee that every military member, family or property will qualify. It is also separate from a previously approved 6.9% overall USAA rate increase; that increase was not announced as a new July 23 rate action.

MS Transverse Insurance Group, a new entrant to California’s homeowners market, received department approval effective July 15, 2026. The company previously had a small presence in California specialty markets.

PURE said it plans to expand its California homeowners business and identify high-value homes, including properties currently insured through the non-admitted market or the California FAIR Plan.

The department identified Farmers, Mercury, Auto Club of Southern California, CSAA, USAA, Liberty Mutual, Travelers, Pacific Specialty, California Casualty, Horace Mann and MS Transverse as the 11 insurance groups committing to stay and grow in California.

That figure should not be confused with the department’s separate market snapshot, which lists six homeowners insurance groups as expanding under the Sustainable Insurance Strategy. The announcement’s 11-group figure describes commitments to stay and grow, while the snapshot’s six-group figure describes groups counted as expanding in that data display.

More choices do not guarantee a quote today

A company commitment, pending filing or future effective date does not mean a homeowner can immediately buy coverage. Availability depends on the carrier’s current underwriting rules, the property’s location and characteristics, wildfire risk, coverage limits and the date a company actually begins writing the relevant policy.

California uses a prior-approval process for many property-insurance rate filings. A proposed rate or related filing remains subject to review before it can take effect. An approved market entry likewise does not guarantee that a carrier will accept every property or offer a price a homeowner can afford.

Homeowners should ask an agent whether a quote is for admitted-market coverage, non-admitted coverage, a supplemental policy or the FAIR Plan. They should also ask when the policy would take effect, what exclusions apply and whether it includes replacement costs, additional living expenses and wildfire-related losses.

Why premiums may remain high

California’s homeowners market remains under pressure even as insurers announce plans to expand. The department’s market snapshot lists 8,300,730 homeowners policies, excluding FAIR Plan policies, and 662 ZIP Codes in distressed areas.

The snapshot also lists 668,609 FAIR Plan homeowner and commercial policies in December. It reports an average California homeowners premium of $1,571, compared with $1,512 nationally.

The FAIR Plan is California’s insurer of last resort. Its policy count, liability exposure, premiums and assessments are different measures of the market’s financial strain. The Los Angeles Times reported that total FAIR Plan exposure reached $750 billion as of March 2026. That figure reflects the value of property covered or backed by the plan, not the amount of premiums collected or the cost of a particular homeowner’s policy.

FAIR Plan policies can also provide less coverage than a standard private policy and may cost more, according to the Los Angeles Times. That makes the availability of private coverage important even if new capacity does not produce lower prices immediately.

Court ruling leaves room for wildfire surcharges

Homeowners may also continue to face costs tied to the FAIR Plan’s financial losses. On July 2, a Los Angeles County Superior Court judge upheld wildfire-related surcharges that insurers imposed after the FAIR Plan needed a $1 billion assessment to help pay claims from the January 2025 fires.

The ruling allowed insurers to pass on part of that assessment to residential policyholders. The Los Angeles Times reported that the median homeowner fee was $28, although the amount can vary with the size of a policy’s premium and may be spread over monthly payments. The decision does not mean every insurer has imposed the same surcharge on every homeowner, but it leaves the approved recovery mechanism in place.

What homeowners should ask now

• Is the quote for an admitted insurer, the FAIR Plan, non-admitted coverage or a supplemental policy?
• Is the carrier currently writing policies for my address, or is the expansion pending or scheduled for a future date?
• What wildfire risk score does the insurer assign to the property, and how can that score be challenged?
• What proof is required for mitigation work such as a Class A roof, ember-resistant vents, defensible space or cleared vegetation?
• Will the policy include a mitigation discount, and when would the savings appear?
• Could FAIR Plan assessments or other approved charges affect the premium?

Under the state’s Safer from Wildfires rules, insurers must provide a property’s wildfire risk score when a consumer applies, before a renewal or non-renewal and after completed mitigation work when the homeowner requests an updated score. Insurers must explain the score, how it can be lowered and how much the homeowner could save. A homeowner can appeal a score to the insurer and seek help from the Department of Insurance if the appeal is denied.

Mitigation that may qualify for discounts includes a Class A fire-rated roof, an ember-resistant zone around the structure, ember-resistant vents, enclosed eaves, cleared vegetation and debris, and other measures listed by the department. Requirements and discount amounts can vary by insurer, so homeowners should keep permits, inspection reports, photographs and other documentation.

What to watch next

The next milestones are the department’s decision on Liberty Mutual’s filing, the January 2027 start date for USAA’s planned expansion and evidence that policy counts and actual quotes improve in distressed ZIP Codes.

Until those steps occur, Californians should treat the announcements as signs of potential additional capacity, not as a guarantee that private coverage is available or affordable for a particular home today.

Sources

• California Department of Insurance: Insurance surge expanding options for Californians in wildfire distressed areas
• Los Angeles Times: Home insurer surcharges for wildfires is legal, judge rules

The dispute puts a delayed state review back before Oklahoma homeowners who have filed or may file hail and wind claims, while the Insurance Department prepares a separate September hearing on whether the statewide homeowners insurance market is noncompetitive.

What Drummond wants released

In his letter to Mulready, Drummond requested the examination report, investigative findings, underlying reports and workpapers from the review of roof-claim handling practices.

Drummond said homeowners who filed claims during the period under review still lacked a public way to learn what the department found or whether it intended to act. The documents reviewed do not establish the examination’s conclusions, whether any insurer violated the law or whether the department will pursue enforcement.

The July 31 date was Drummond’s requested deadline. The letter and related attorney general announcement do not establish that it was a statutory deadline.

A missed first-quarter target

In a Dec. 8, 2025 statement, the Insurance Department said it had been investigating roof claims for two years. Mulready said the work included sending third-party engineers to inspect insurance adjusters’ work and that the department expected to conclude the investigation in the first quarter of 2026.

That target passed without a publicly released examination report identified in the official records reviewed for this article. The department’s statement said market-conduct investigations can take considerable time and that any action taken would become public information.

The legal dispute is unresolved

Drummond cited 74 O.S. § 18b(A)(22) and 36 O.S. § 309.4(E) in arguing that the report can be released. His reading of the law is that the commissioner must keep the content of an examination report private for two days, after which the commissioner may open it for public inspection unless a court has stayed publication. He also cited language permitting disclosure of examination information to a state law-enforcement official.

Those points are Drummond’s legal argument, not a court ruling. The materials reviewed do not establish that the Insurance Department violated the law or that a court has resolved the dispute.

Why homeowners are watching

The report could give homeowners, lawmakers and regulators a clearer account of how insurers handled roof claims during the period examined. That matters to residents dealing with disputed coverage, repair delays, deductibles, hail or wind damage, premiums and policy renewals.

Until the official materials are available, residents should not treat allegations about claim practices or insurer violations as established findings. The delayed report also cannot by itself resolve an individual homeowner’s claim or require an insurer to pay a particular amount.

Public Radio Tulsa and Oklahoma Watch previously documented the consequences of a disputed roof-related insurance claim for an Edmond family and reported on the department’s disclosure of the investigation. That reporting provides resident context for why the state’s examination matters, but it does not establish what the examination itself concluded.

Separate hearing is scheduled for Sept. 14

The report dispute comes as the Insurance Department prepares a separate proceeding on Oklahoma’s homeowners insurance market.

According to the department’s July 14 notice, an independent hearing examiner will hear evidence and argument on Monday, Sept. 14, 2026, at 9 a.m. at the Oklahoma State Capitol’s Multipurpose Room 100 in Oklahoma City. The stated purpose is to determine whether the Oklahoma homeowners insurance market is noncompetitive.

Property and casualty insurers writing homeowners coverage in Oklahoma and the attorney general may participate if they have the required interest and file an entry of appearance with the department.

The notice expressly says the hearing is not for determining whether particular homeowners rates are excessive and is not for addressing individual claims issues. For residents with a pending or disputed roof claim, it is a market proceeding—not an appeal process for a denied claim or a forum for deciding an individual coverage dispute.

What happens next

The immediate accountability question is whether the Insurance Department releases the requested examination materials or issues a formal response to Drummond’s demand. The official sources reviewed for this article do not establish a release, court stay, formal denial or other post-demand action as of July 31, 2026.

Homeowners with active disputes should continue using the policy, regulatory and legal options available for their individual claims. Any eventual examination report may provide broader regulatory context, but it will not automatically decide a homeowner’s case.

Sources

• Attorney General’s July 27 demand announcement
• Oklahoma Insurance Department roof-claims investigation statement
• Public Radio Tulsa/Oklahoma Watch roof-claims reporting

The California Board of Forestry and Fire Protection approved the 2026 Fire Risk Reduction Community List on June 17, 2026. The list became effective July 1, and the City of Redlands announced its designation on July 14.

What the designation recognizes

Redlands’ designation is tied to communitywide wildfire planning and mitigation work, including the city’s Community Wildfire Protection Plan, partnerships and preparedness efforts. The state program recognizes communities that have documented steps to reduce wildfire risk and improve readiness.

That community-level recognition is different from a review of an individual home. A designation for Redlands does not mean every property has the same level of protection or faces the same wildfire exposure.

How it could affect insurance

California Department of Insurance guidance says applicable insurers must account for community-level wildfire mitigation factors in their rating plans, subject to regulatory requirements and approved insurer filings. Redlands’ designation may therefore be considered when insurers develop or apply rates.

That does not mean every insurer will provide the same benefit or that policyholders will see an immediate change on their next bill. Premiums can also depend on property-specific factors such as the home’s construction, roof and vegetation conditions, location, hazard exposure, underwriting standards and the insurer’s approved rating plan.

Residents should treat the designation as a possible insurance-rating consideration, not as an automatic discount. It also does not guarantee that a policy will be renewed or that coverage will be available from any specific company.

Questions homeowners can ask now

Homeowners can contact their insurers and ask whether community-level wildfire mitigation is reflected in the policy’s rating plan. They can also ask what documentation may be needed to verify mitigation work, whether property-level improvements affect the policy, and how to request a review if they believe qualifying information was not considered.

Keeping records of completed work may help with those conversations. Useful documentation could include invoices, inspection records, photographs, permits when applicable and other evidence showing that mitigation measures were completed and maintained.

Home preparation still matters

The designation does not replace defensible-space maintenance or home-hardening work. CAL FIRE guidance emphasizes measures intended to reduce the chance that embers will ignite a home, including improvements to roofs, vents, gutters, windows, decks, doors and siding.

For Redlands residents, the practical takeaway is straightforward: the city’s designation may support future insurance-rate calculations, but the outcome will vary by insurer and property. Maintaining defensible space, improving ember resistance and asking precise questions about the policy remain important steps even after the state recognition.

Sources

• City of Redlands designation announcement
• California Board of Forestry 2026 list and approval resolution
• California Department of Insurance wildfire mitigation FAQ
• CAL FIRE home-hardening guidance

Why the city landed in the midsize bracket

ConsumerAffairs defines midsize markets as places with 250,000 to 499,999 residents. The U.S. Census Bureau estimated Port St. Lucie’s population at 268,062 on July 1, 2025, so it fits that group.

The ranking weighs competition, affordability, home size and livability. In practical terms, it says buyers may have more leverage than in tighter markets.

Why the monthly math still matters

WPTV reported that a local agent told buyers to check property taxes, insurance and HOA fees before comparing homes. Census data show the city’s median owner-occupied home value was $369,200, with median monthly owner costs of $1,954 for households with a mortgage.

That means a buyer-friendly market can still produce a large payment once taxes, insurance and dues are added.

What it means locally

For residents, the ranking is another sign that Port St. Lucie remains attractive to outside buyers. For house hunters, the lesson is simpler: buyer-friendly does not automatically mean affordable.

Sources

• WPTV: ConsumerAffairs study ranks Port St. Lucie as No. 1 midsize housing market for buyers in 2026
• ConsumerAffairs: Best housing markets for buyers methodology and ranking
• U.S. Census QuickFacts: Port St. Lucie city, Florida
• Florida Realtors: May 2026 single-family home market sales activity
• FRED: All-Transactions House Price Index for Port St. Lucie, FL (MSA)