FHA increases max wind or named storm deductible

HUD has announced that the Federal Housing Administration has updated its policies for wind and named storm insurance coverage required for multifamily properties financed with an FHA-insured mortgage, as part of HUD’s broader work to address rising insurance costs.

Effective immediately, the FHA is increasing the maximum permissible wind or named storm deductible to the greater of $50,000 or five percent of the insurable value per location, up to a maximum amount of $475,000 per occurrence. Previous MAP Guide policy prohibited this deductible from exceeding the greater of $50,000 or one percent of the insurable value for any insured building up to a maximum amount of $250,000.