U.S. Congressman Andy Barr (R-KY) praised President Donald Trump and Federal Housing Finance Agency Director Bill Pulte on Mar. 18 for reversing a policy that required federally backed mortgages to carry full replacement cost value insurance, a move Barr said will help rural homeowners manage insurance costs.
The change is significant for many families in rural areas who have faced rising housing and insurance expenses. The previous regulation, put in place during the Biden administration, banned actual cash value policies for roofs, which are often used by homeowners to keep premiums affordable. Reforming this policy has been a priority for the Kentucky Farm Bureau.
“President Trump and Director Bill Pulte are delivering real relief for homeowners, especially in rural communities where families are already dealing with rising housing and insurance costs,” said Congressman Barr. “The Biden-era mandate forced homeowners into more expensive replacement cost policies instead of more affordable options that made sense. Restoring the ability to use actual cash value coverage for roofs will help keep insurance premiums manageable and protect access to homeownership.”
The Kentucky Farm Bureau also welcomed the decision, saying in a statement: “Kentucky Farm Bureau applauds the Administration and FHFA Director Pulte for addressing this important issue that impacts Kentucky homeowners and future home buyers. We appreciate Congressman Barr’s tireless efforts to advocate for one of KFB’s key priorities. Allowing for the use of ACV on roofs in Kentucky will allow for more consumer choice in addressing their insurance needs.”
Barr has advocated against the mandate since last year, when he sent a letter with House Financial Services Housing and Insurance Subcommittee Chairman Mike Flood to FHFA leadership raising concerns about restricted consumer choice and increased costs. In his letter to Director Pulte, Barr wrote: “We write to express serious concerns about the Government-Sponsored Enterprises (GSEs) prohibiting the acceptance of actual cash value (ACV) homeowners insurance policies for federally backed mortgages, something highlighted in guidance issued in February 2024. Mandating RCV policies not only restricts consumer choice but also imposes significant cost burdens on families already facing steep affordability challenges in the housing market.”
Barr pointed out that state insurance departments already regulate these types of policies, ensuring quality coverage options remain available.
Barr is currently serving as U.S. Representative from Kentucky’s 6th district after replacing Ben Chandler in 2013 according to Wikipedia. He previously served in the Kentucky House of Representatives according to his official biography. Born in Lexington in 1973, Barr is now 49 years old and continues to reside there as reported by Congress.gov. He graduated from the University of Virginia with a BA in 1996 and earned his JD from the University of Kentucky College of Law in 2001 according to his official biography.
