Selling Guide

The Selling Guide is organized into parts that reflect how lenders generally categorize various aspects of their business relationship with Fannie Mae. To begin browsing, select from any of the sections below. You may also download the entire Selling Guide in PDF format.

View All Selling Policy Updates

Download PDF

Hint: Ask in a form of a question.

B7-4-01, Liability Insurance Requirements for Project Developments (09/04/2018)


This topic contains information on liability insurance, including:


Liability Insurance Requirements

Liability insurance is required for certain condo and co-op projects.

The HOA or co-op corporation must maintain a commercial general liability insurance policy for the entire project. The 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 use of the project’s common areas and elements, and any other areas that are under its supervision.

If the policy does not include severability of interest or separation of insureds 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.


Exceptions to Liability Insurance Requirements

Liability insurance is required for all condo and co-op projects, with the following exceptions:


Amount of Coverage

The amount of coverage must be at least $1 million for bodily injury and property damage for any single occurrence.


Cancellation/Modification Requirements

The policy must provide at least ten days’ written notice to the HOA, co-op corporation, or insurance trustee before the insurer can cancel the policy.

Related Articles

B7-4-02, Fidelity/Crime Insurance Requirements for Project Developments (09/04/2018)

IntroductionThis topic contains information on fidelity/crime insurance, including: Fidelity/Crime Insurance Requirements  Exceptions to Fidelity/...

Read more

Have guide questions? Get answers to all of your policy questions, straight from the source.

Get Started
Having Issues with Seeing this Page Correctly?

Use Firefox or Chrome   How to do a hard refresh in Internet Explorer
We recommend that you use the latest version of FireFox or Chrome.

Download Firefox
Download Chrome
  A hard refresh will clear the browsers cache for a specific page and force the most recent version of a page.
    Hold the Ctrl key and press the F5 key.

Email Us
If you still have Technical Support questions, feel free to