Business Insights

What Fannie Mae and Freddie Mac’s insurance rule change means for roofing contractors

Rising homeowners insurance premiums are driving significant changes across the mortgage and housing market — and roofing contractors are positioned to feel the effects directly. On March 18, 2026, Fannie Mae and Freddie Mac announced a major policy update: they will now permit mortgages backed by Actual Cash Value (ACV) roof insurance, instead of requiring Replacement Cost Value (RCV) coverage. This adjustment is designed to help reduce monthly insurance costs for homeowners.

More roofing work paid out of pocket

For roofing contractors, the most immediate impact of this insurance rule change is how roof projects are funded. Under ACV roof insurance policies, claim payouts are calculated using the depreciated value of the existing roof, rather than the full replacement cost. As a result, homeowners — especially those with aging roofs — are likely to face higher out-of-pocket expenses after storm damage, hail events, or roof leaks.

As ACV coverage becomes more common, roofing professionals may encounter:

• Increased demand for roof repairs instead of full roof replacements
• More requests for cost-conscious bids, phased roofing projects, and value-engineered solutions
• More conversations explaining roof depreciation, insurance claim limits, and upgrade options

Increased demand for roof inspections and claim documentation

Because ACV insurance payouts are closely tied to roof age and condition, detailed documentation is now more critical than ever. Roofing contractors who provide thorough roof inspections, written condition reports, and photo documentation can play a key role in supporting homeowner insurance claims—or helping resolve insurer disputes.

This new landscape creates opportunities for roofing contractors to:

• Offer pre-purchase roof inspections for homebuyers using Fannie Mae or Freddie Mac loans
• Build referral relationships with real estate agents, mortgage lenders, and insurance professionals
• Position themselves as trusted roofing and insurance advisors, not just installers

Bottom line for roofing contractors

While the shift to ACV roof insurance may reduce the number of insurance-funded full roof replacements, it is likely to increase overall demand for inspections, repairs, and strategic roofing solutions. Contractors who can clearly explain the difference between ACV vs. RCV insurance, provide flexible scopes of work, and guide homeowners through insurance coverage realities will be best positioned to earn trust — and more consistent work — in this evolving market.

One additional, highly effective way to help homeowners manage higher out-of-pocket costs is by offering financing options. As insurance covers a smaller portion of roof replacement costs, providing fast, simple home improvement financing can be the deciding factor between winning a roofing bid or losing it.

To learn how Regions Home Improvement Financing can help your roofing business succeed amid these insurance and mortgage changes, visit this page for more details.