Protect The Value of Your Home

It seems there is an insurance policy for everything! Now, there’s a new insurance policy being offered to protect your home’s value.

Although it doesn’t protect against a change in the real estate market, there are some instances when such a policy could help a homeowner whose value has been affected by issues outside their control.

I have had two listings in particular where it appears the homeowner may have benefited from such a policy. Both involved the extension of roads or freeways which abutted their property.

Although I am not necessarily advocating such a policy, I found the article and website interesting enough to research. When would such a policy be beneficial? In the instances above, where I represented the seller’s, the homes may not have qualified for the insurance.

One couple had lived in their home 7 years, but the proposed plan for the extension of the Parkway was already in place when they bought the home.

The government paid the other couple for a portion of their land to be used for a new freeway interchange. They could have still suffered additional monetary damage, except it will be hard to determine with the change in the market and no additional homes on the street having sold in the last 12 months.

The website indicates the policy would protect against road construction or widening, transportation facilities, such as train stations, airports and bus stations, commercial buildings, industrial parks, hospitals and medical facilities, shopping centers, sports complexes or stadiums, prisons, educational establishments and public utility sites. It would also cover inability to rebuild, noise nuisances and land or zoning changes.

Of course, there are also limitations, conditions and terms – one being you have to sell the property to realize the loss first, then you could be reimbursed. The website doesn’t say whether the policy is available to Indianapolis home owners.

While it may be worth considering, it is something I would caution my clients to thoroughly investigate before jumping in. You can find out more information here.