Skip to main content
Search the Guide:

B7-3-07, Evidence of Property Insurance (12/14/2022)

This topic contains information on evidence of property insurance, including:


The following requirements apply when documenting and retaining evidence of property insurance policies:

  • The lender or servicer must verify the existence of a valid insurance policy that meets Fannie Mae's requirements. Information related to the policy should be passed on to the servicer, when applicable.
  • The lender or servicer must retain acceptable evidence of insurance for each required policy, which includes sufficient information about the insurance policy, the subject property, and the borrower to ensure compliance with Fannie Mae's requirements for a first mortgage, unless the lender or servicer is covered by a mortgage impairment or mortgagee interest insurance policy or uses other evidence of insurance that Fannie Mae considers acceptable.
  • The servicer of a second mortgage must retain a copy of the insurance policy, any endorsements to it, and evidence of premium payments.
  • The servicer must verify at least annually that any property insurance policy for a one- to four-unit property or a unit in a project development meets Fannie Mae's requirements.

Note: If a lender is unable to determine whether the applicable insurance policy meets Fannie Mae's requirements, the associated loan is not eligible for purchase by Fannie Mae.

Certificates of Property Insurance

A lender or servicer may accept a certificate of property insurance in lieu of a complete property insurance policy if the certificate includes all of the information needed for the lender or servicer to determine whether the insurance meets Fannie Mae's requirements. The certificate of property insurance must be signed by the insurer.

Master Property Insurance Policies for Project Developments

When required, the lender or servicer must obtain a copy of the current master property insurance policy or a certificate of property insurance showing that the subject unit is covered under the master property insurance policy. See Servicing Guide, B-2-03, Master Property Insurance Requirements for Project Developments, for additional servicer responsibilities related to evidence of master property insurance policies for project developments.

Electronic Data Files

Electronic data files are acceptable in lieu of hard copy insurance policies if all the requirements in the following table are met.

Requirements for Electronic Data Files for Insurance Policies

The data file must include sufficient information about the insurance policy, the subject property, and the borrower to ensure that the servicer is able to comply with Fannie Mae's requirements for maintaining and monitoring property insurance, such as

  • reviewing the insurance policy terms, amount of coverage, and deductibles;
  • confirming that the premiums have been paid; and
  • processing loss drafts.
  The lender's or servicer's errors and omissions insurance policy must acknowledge electronic data transfers and fully protect the lender or servicer and Fannie Mae against losses incurred as the result of erroneous data files or transfers.
  The insurer must provide the lender or servicer with written assurance that the data file is equivalent to a printed policy, typically through a detailed agreement between the two parties.
  The lender or servicer must have appropriate procedures in place to mitigate risks associated with not possessing an original hardcopy policy, which may include obtaining certifications from the insurer as to the accuracy of certain information that the servicer is required to verify.
  The lender or servicer must provide legible hard copies of the complete insurance policies and proof of premium payments if Fannie Mae requests them.


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