Home Value Insurance... Could it be the answer to higher sales growth?

There are a few private insurance companies that are now offering “Home Value Insurance Policies”. Typically, buyers pay a premium of between 1-3% of the purchase price of the property. The insurance kicks in if the property is sold at a loss after 3 or more years.

This home depreciation insurance is something that’s floating around currently. Some argue that this type of coverage would encourage further sales growth because owners won’t be worried about WHEN the housing market will hit bottom, and if they are paying too much. Instead, buyers would rest assured that their investment is safe from a further declining housing market. Proponents want such coverage underwritten by the US government. Estimates for the cost to taxpayers on such an undertaking are from $20-150 million dollars, which would be the cost to administer.

Worth it? Keep reading these newsletters and looking out for our updates on legislation including this new potential initiative on correcting the housing market.