2026-09-15 · Mississippi · Compliance

A Mississippi Gulf Coast condominium master policy that excludes named storms can now render every unit in the building ineligible for a conventional mortgage. The March 18, 2026 Fannie Mae and Freddie Mac project-standards package made named-storm coverage a required component of windstorm coverage, and capped master-policy per-unit deductibles at $50,000. Both apply to applications received on or after July 1, 2026 — already in force.¹

The operative sentence

Freddie Mac's bulletin states it plainly: “Named storms designated by the U.S. National Weather Service or the National Oceanic and Atmospheric Administration by a name or number are a required component of windstorm coverage.”

The deductible rules sit alongside it. A master policy's per-occurrence deductible “may not exceed 5% of the limit maintained for building(s) coverage per occurrence.” A master policy's per-unit deductible “may not exceed $50,000 per unit” — replacing the previous 5%-per-unit formula.

Why this is a Mississippi problem specifically

In Harrison, Hancock and Jackson counties, standard carriers routinely exclude wind and hail from property policies. Coastal condominium associations therefore typically obtain master wind coverage through the Mississippi Windstorm Underwriting Association — the windpool — or through a layered arrangement that carves named-storm exposure out of the primary policy.

A structure that carves named storms into a separate layer is exactly what this rule is written to catch. The question is no longer whether the building is insured for wind; it is whether the windstorm coverage the GSEs are looking at includes named storms.

1. Freddie Mac Bulletin 2026-C, "Selling and Servicing Updates" (Mar. 18, 2026) — Guide Chapters 4703 and 5701 ↩
2. FHFA news release, "Fannie Mae and Freddie Mac Remove Certain Homeowners Insurance Requirements That Will Reduce Costs" (Mar. 18, 2026) ↩