Home Value Insurance Co. has chosen Ohio for the launch of a new policy that protects homeowners from falling property values. The company says that since the Sept. 28 introduction of the Home Value Protection policy, more than 75 independent insurance agents across the state have applied to sell it.
The policy protects a home’s current value from future declines in the local housing market, as measured by the Case-Shiller Home Price Index. If home prices in the area decline and the insured policyholder sells the home for less than the protected home value, the policy covers up to 25 percent of the loss in value. Premiums typically are $20 per month per $100,000 of value, with a limit of $500,000 of value.
The policy locks in the present value of the home for 10 years. There are deductibles of 10 percent the first year and five percent the second year that the company says are intended to prevent flipping.
More information on the policy is available from the Home Value Insurance Web site.