Insurer Markets Home Value Product

An insurance product, which is supposed to protect homeowners from declines in property values, is now being marketed in Ohio with plans to roll it out nationwide.

Home Value Insurance Co., based in Columbus, Ohio, is selling Home Value Protection to consumers. The product works as follows: when the homeowner sells their home for less than the insured home value, the policy will help cover the loss.

The homeowner can lock in the current insured value for 10 years. If prices appreciate, they can purchase a new policy with a higher insured home value.

The policy will cover up to 25% of the protected home value and there is a deductible for the first two years of coverage.

For a typical home in Ohio, the company said premiums are between $35 and $45 per month.

Scott Ryles, chief executive of Home Value Insurance Co., said this product has been in development since 2009. The company is regulated by the Ohio Department of Insurance. It is marketing the product through independent agents to homebuyers and existing homeowners, including those that are nearing retirement age, who plan to use their post home sale income to help finance their retirement.

Ryles said the company chose Ohio for the roll out because it has "large population centers that are representative of the broader U.S. market and its homeownership rate of 70% is high."

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