Chris Lowry is a Territory Manager with Orion180, who focuses on the states of Alabama and Mississippi. He has 17 years of expertise in the insurance industry, including 15 years leading his own agency.
Working with clients in today’s market, you’ve likely felt the tension between rising insurance costs and mortgage requirements. You may have even had trouble securing coverage for homes with roofs near the end of their useful life.
Recent guidance from the Federal Housing Finance Agency (FHFA) is a meaningful step toward easing that pressure—and it’s worth understanding what it means for you and your clients.
Breaking Down the Federal Shift
In March, the FHFA announced that Fannie Mae and Freddie Mac would revise certain homeowners insurance requirements tied to mortgage eligibility.
One key update was clarification that actual cash value (ACV) coverage is accepted for single-family homes. At Orion180, roofs over a certain age – varying based on the roof materials – are considered outdated. These roofs require an ACV settlement, which helps homeowners avoid inflated premiums.
Before this new guidance, some lenders took a strict view and required RCV roof coverage. Now there is clarity, and you can bind with confidence.
How This Expands Your Options and Eases Placements
From where I sit working alongside agents, this is a practical shift that should help reduce friction in your day-to-day work.
- More flexibility when placing business: You’ll have more room to structure policies that meet both our guidelines and lending requirements
- Fewer last-minute hurdles: Deals that may have stalled due to strict insurance requirements now have a clear path to closing
- Better alignment with reality: The gap between what lenders required and what the market could actually provide has been a challenge – this helps close that gap
Simply put, this gives you more workable options when advocating for your clients.
Relief for Your Clients
The benefits for your clients are straightforward and important. They’ll be able to access lower premiums for homes with older roofs. For some, this may even mean the difference between being able to access a policy or not.
Orion180 is an ideal solution for many homes, with broad eligibility for properties built from 1900 to today. We support Coverage A limits up to $1 million in our inland territories, and up to $2 million in the coastal counties where we operate, with no distance-to-coast exclusions.*
We offer your clients a high level of customization, with the ability to exclude Coverage B, Coverage D, Coverage E and Coverage F. They can also choose from a wide range of flat dollar and percentage deductibles, with meaningful discounts available.
All with our 5-star service, where both you and your clients can access a live service representative to have your questions answered quickly and professionally.
Learn more about Home Insurance with Orion180, and become a partner agent today!
