Fannie Mae deserves more from her insurance provider.

On March 29th, 2024 Beyonce released Cowboy Carter; Of course I’ve been listening to it on repeat ever since then and there’s something that has been bothering me and it’s finally time to address it: 

Why is Fannie Mae’s insurance company not going to pay on her wildfire loss!?

On the song entitled “Ya Ya” Queen Bey sings about a wildfire that burns down a house. Like in the end of Lemonade, it was a total loss. She then goes on to tell the listener that “insurance ain’t gon’ pay no Fannie Mae”. 

Every time I hear that part it brings up a burning question. Why isn’t Fannie Mae getting paid? Home Insurance inspired by Beyonce

Beyonce, Fannie Mae's Protector

Because we don’t know what kind of policy Fannie Mae has, first we need to understand the different kinds of homeowner’s policies.

The two main types are Named Peril vs. Open Peril

Homeowner's insurance protects your property from various dangers. But how your policy defines those dangers can significantly impact your coverage. Here's a breakdown of the two main policy types:

Open Peril Policy (Also called "all-risk" policy) is the more common of the two.

• Broader Coverage: This type of policy covers everything except what's specifically excluded in the policy wording.

• Fire Coverage: Fire is almost always a covered peril in open peril policies. These policies are designed to offer comprehensive protection for your home and belongings.

• Most Common Choice: Open peril policies are the most common type of homeowner's insurance as they provide wider coverage.

Named Peril Policy:

• Think of it as a specific list: This type of policy explicitly outlines the events (perils) it covers for damage to your home and belongings.

• Fire Coverage: If fire is not listed as a covered peril in your named peril policy, you won't be financially protected for fire damage.

• Less Common: While still available, named peril policies are less common than open peril policies. They might be offered for older homes or those in high-risk areas, but even then, fire is usually included as a covered peril.

Other factors to consider:

Intentional arson by the owner obviously not covered, and that person would have a heck of a time getting covered in the future. 

In rare instances a property may be uninsurable for most companies. 

Common to have binding restrictions for locations in an area that is prone to or has had a prior occurrence of landslide, forest fires, or brush fire. And good luck if your Dwelling located on an island with no Fire Protection Service!

“Temporary suspension of writing” 

In Oklahoma, a more common example of “Temporary suspension of writing” is when there is an impending storm some companies will not allow endorsements adding physical damage coverage to cars. The idea being that customers would add the coverage last minute just in case. 

It’s the same concept here. If there’s an impending fire and a customer wants to make a last minute endorsement (for example, lower their deductible) their insurance company will tell him boy bye!

The Verdict: Fannie Mae Should Be Covered… (Probably)

With the details we have I can’t say for sure, but based on the usual coverage for wildfires, Fannie Mae should be covered. 

Insurance 101: Okay ladies now let’s get information!

This situation highlights the importance of understanding your own homeowner's insurance.

• Read Your Policy: Check up on it to know what perils (dangers) are covered.

• Talk to Your Agent: They're like your Tina of insurance, there to answer your questions and provide advice and guidelines.

• Personal Article Floater (PAF): A personal article floater is an insurance policy add-on that provides additional coverage for specific high-value items that aren't adequately covered under your standard homeowners or renters insurance policy. These irreplaceable items could include:

• -Jewelry “Rhinestones and diamonds both shine in the light”

• -Fine Art “knocking Basquiats off the wall”

• -Antiques "the kind you find in a second-hand store..."

• -Collectibles for example, all your Grammy awards, (none of which are for best album but we remain unbothered.)

• -Electronics if perhaps you had equipment you've been using to shoot the Renaissance visuals or something like that... you know, you'd want to make sure that was protected.

• -Fur “Purple-colored mink”

Bonus Round (Random Insurance Facts Inspired by Queen Bey):

• Smoke Alarm and Security Discount? Ring the alarm! Most companies offer discounts for having a top-notch smoke alarm and security system discount. Julius would approve!

• Fire Prevention is Key: Beyonce knows she can’t cook, and because of that she avoids it. Preventative measures can sometimes be a requirement for an insurance company, and it is just the smart thing to do. 

Call me and I will be your protector.

P.S. This blog post is for informational purposes only and doesn't constitute specific insurance advice. Always consult with a licensed insurance professional for your specific policy information.