How much insurance do I need? (Video)


The minimum amount of homeowner's insurance coverage required for a mortgage varies by loan program and specifics of the property and loan amount. However, the Fannie Mae requirements are some of the most commonly used throughout the mortgage industry and they will give you a great starting point even if you're obtaining a different kind of loan. 

In this video, Nick Kristoff, Senior Loan Officer, discusses the Fannie Mae requirements and provides a quick and easy tool to determine the amount of coverage Fannie Mae requires.

Key Terms

Fannie Mae's guidelines compare 3 numbers when determining the minimum amount of homeowner's insurance coverage. Here's what they are and what they mean:

Insurable Value: The value of a property that can be insured by a homeowner's insurance policy. This number does not include land value. It is the insurable value of the structure on the property as determined by the insurance company.

80% of the Insurable Value: Just like it sounds, this number is 80% of the Insurable Value described above.

Mortgage Loan Amount: This is the dollar amount of the loan secured by the property.

Download the Spreadsheet

Format: Excel (.xlsx)
Size: 147 KB
File: Fannie Mae Insurance Calculator.xlsx