Protect Your Home from Declines in Value
Hello Hampton Roads,
Wouldn't it be great if you could protect your home against declines in value? There's a new kind of insurance out there called Home Value Insurance offered by the Home Value Protection Company which protects homeowners against losses in their primary residence when they sell. Steve Cook wrote a great article about this in the November 10, 2011 issue of Consumer Confidence, Consumer Reports.
Currently the company is only offering this insurance in Ohio and if successful, will expand to other states. So how does it work? For a monthly premium of $35-$45, a homeowner can recoup a loss on the sale of a home based upon the insured value of the home or the drop in local home values as measured by the Fiserv/Case-Shiller Single Family Home Price Index. Claims are limited to a maximum of 25% of the insured value, and there is a deductible during the first two years. In addition, for the policy to kick in, the insured home must sell for less than its protected value and local home values must have decreased during the policy period.
Will this program come to this area? We will see, but a company representative said, "Ten years ago people didn’t believe they needed coverage on the valuation of their real estate. Before 2007, prices had never fallen on a year-over-year basis. Today owners want to protect themselves against future losses."
Have a wonderful day!
Thanks for Reading,
________________________________________________________
Serving your Hampton Roads and Virginia Beach Real Estate needs.
Wouldn't it be great if you could protect your home against declines in value? There's a new kind of insurance out there called Home Value Insurance offered by the Home Value Protection Company which protects homeowners against losses in their primary residence when they sell. Steve Cook wrote a great article about this in the November 10, 2011 issue of Consumer Confidence, Consumer Reports.
Currently the company is only offering this insurance in Ohio and if successful, will expand to other states. So how does it work? For a monthly premium of $35-$45, a homeowner can recoup a loss on the sale of a home based upon the insured value of the home or the drop in local home values as measured by the Fiserv/Case-Shiller Single Family Home Price Index. Claims are limited to a maximum of 25% of the insured value, and there is a deductible during the first two years. In addition, for the policy to kick in, the insured home must sell for less than its protected value and local home values must have decreased during the policy period.
Will this program come to this area? We will see, but a company representative said, "Ten years ago people didn’t believe they needed coverage on the valuation of their real estate. Before 2007, prices had never fallen on a year-over-year basis. Today owners want to protect themselves against future losses."
Have a wonderful day!
Thanks for Reading,
________________________________________________________
Serving your Hampton Roads and Virginia Beach Real Estate needs.
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