What is "Equity Protection?"
At the time of purchase, "Equity Protection" ties the current value of a home to the local housing market. In the future, when/if it is sold, if the value of your local housing market has declined, you will receive an "Equity Protection Payment" determined by taking the percentage change in the index times your contract home value when inrolled in Equity Protection. The Equity Protection Payment only depends on the local housing market index and does not depend on the sales price of your home. If the local housing market index is down when you sell your home, you will receive an Equity Protection Payment. If the local housing market index is higher at the time you sell your home, no payment is made.
So what's the "local market index?"
In a nutshell, it's a value of a home based on data provided by First American CoreLogic, the leading provider of authoritative local market home price information. Updated monthly, it tracks the local housing market at the zip code level using a detailed, standard and consistent methodology. The HPI is not an appraisal of your home and does not require any visual or physical inspection of your home.
Is this insurance?
Equity Protection is not insurance and does not replace any homeowners insurance coverage already in place. Equity Protection is a contract to protect a home from a decline in the local housing market. Equity Protection does not provide insurance for an individual property nor does it guarantee that a loss will not be incurred when the home is sold. The Equity Protection Payment is determined by the decline in the local housing market index at the time of sale.
How much does it cost?
Equity Protection is available in most areas for a price of 1% to 2% of your home value. A low cost monthly product is also available. Pricing is based on a view of the local housing market and overall portfolio management and diversification needs.
Is there any fine print?
Equity Protection is a straightforward product. Three things you should be aware of when you purchase Equity Protection are:
| 1. | Equity Protection includes a waiting period before your home sale is eligible for an Equity Protection Payment. |
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| 2. | There is a limit of one Equity Protection contract per customer. |
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| 3. | When the home is sold, it must be a bona fide arm's length transaction (i.e., it can't be sold to a friend or relative). The contract and our terms and conditions are designed to be clear and easy to read, so we do ask that you read them with care when you purchase Equity Protection. |
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