INDIANAPOLIS--(BUSINESS WIRE)--Home Value Protection, the only insurance policy in the U.S. that takes housing market risk out of homeownership, becomes available across Indiana this week. With a Home Value Protection policy, homeowners can insure the market value of their home—the largest financial asset of most families—from volatile market cycles.
“Housing prices have been, and will continue to be, notoriously difficult to predict,” explained Scott Ryles, CEO of Home Value Insurance Company. “For $1 or $2 a day, Home Value Protection gives Indiana homeowners greater control over the value of their home investment, and peace of mind in a volatile housing market,” he added.
“Homeowners have long been able to buy insurance to protect against devastating events like fires and floods. Luckily, most people will never experience a significant casualty loss. However, nearly every homeowner has experienced a loss of home value in recent years. In fact, our research shows that 58 percent of homeowners recognize that the most likely risk to impact their home is loss of home value. Now they insure against that potential loss," said Ryles.
For a typical Indiana home, monthly Home Value Protection premiums are from $20 to $30 a month. To track housing values, Home Value Protection insurance uses the Case-Shiller® Home Price Index, a leading industry measure that tracks local housing market performance. Indiana is the fourth state in the nation where this groundbreaking insurance policy for owner-occupied, primary residences is being offered by Home Value Insurance Company, a licensed insurance carrier regulated by the Indiana Department of Insurance.
“Despite some recent positive signs in the Indiana housing market, many prospective homebuyers are sitting on the sidelines, unwilling to risk a down payment to market forces beyond their control. Now, with Home Value Protection, homebuyers no longer have to worry if the market has hit bottom. They can insure their down payment against a drop in home prices and still realize the upside when home values appreciate,” said Ryles.
Existing homeowners also benefit, since a Home Value Protection policy insures that they won’t lose more equity from continued home price volatility, or be stuck if values are down when they want to sell.
Job Transfer, Unemployment, Life Events Create Unexpected Need to Sell
“Every homeowner becomes a home seller. The only question is when and why,” said Ryles. “Many times a life event, such as a job transfer, divorce or growing family dictates the need to sell. A weak housing market typically is coupled with poor economic conditions that can result in job loss and the need to relocate to find work. With Home Value Protection, homeowners have the flexibility to sell their home, even in a down market.”
How It Works
Here is how Home Value Protection insurance protects homeowners. A home is insured based on the current market value. If local home prices decline and a policyholder sells their home for less than the insured value, their policy protects against the loss. Home Value Protection provides ongoing protection from an uncertain housing market. If home values appreciate, a homeowner can purchase a new policy with a higher insured home value.
Home Value Protection insurance protects homeowners at all stages of life:
- Homebuyers - Home Value Protection allows homebuyers to lock in their purchase price and insure their down payment from the risk of declining home values. As homebuyers pay down their mortgage, Home Value Protection protects the initial down payment, as well as the growing equity they are building in their home.
- Existing homeowners - Home Value Protection insurance safeguards the financial well-being of existing homeowners by protecting the savings they have invested in their home. Home Value Insurance provides peace of mind for homeowners, protecting them from risk and allowing them flexibility to sell their home on their own timetable.
- Near retirees and Retirees - For most boomers, the majority of their net worth resides in their home. They are counting on their home equity to help fund future retirement costs, cover health care expenses or for their estate plans. With Home Value Protection, boomers can protect their home equity nest egg from the housing market so it is there when they need it.
Home Value Protection insurance is available from independent insurance agents in Indiana, directly through the company's website, HomeValueProtection.com, or by calling 1-866-576-0611. The company is building a network of independent insurance agencies across the state, who will be appointed to sell Home Value Protection insurance.
Home Value Insurance Company is proceeding with US expansion plans as it seeks to address demand from homeowners and prospective homebuyers. In addition to Indiana, Home Value Protection is available in Ohio, Oklahoma and Georgia.
About Home Value Insurance Company
Home Value Protection insurance is a property and casualty insurance policy underwritten and offered by the Home Value Insurance Company. The Home Value Insurance Company is a licensed, admitted carrier in Indiana. Home Value Protection insurance is not sponsored, endorsed, sold or promoted by Standard & Poor's, Fiserv, or any of their affiliates, and they make no representation regarding the advisability of purchasing Home Value Protection insurance. Standard & Poor's®, S&P®, Fiserv®, Case-Shiller®, and related trademarks used with permission.
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