In September 2011, Home Value Insurance Co. introduced a type of homeowners' insurance intended tosafeguard families against a decline in property value. At thetime, the coverage was only available to Ohio residents; however,the company had projected to sell the policies in “15 to 20 states”by the end of 2012.

It would seem that Home Value Insurance is making progresstoward that goal, as the company rolled out a plan to helpOklahomans insure against having their homes become a casualty ofthe depressed real estate market.

The insurance is called Home Value Protection, and policies aresold only for owner-occupied primary residences. According to theOklahoma Department of Insurance, the state licensed the company asan insurance carrier in December.

“With Home Value Protection, homeowners don't have to worry thatthey could lose equity in their home or end up underwater,”explains Scott Ryles, CEO and chairman of the board at Home ValueInsurance Company. “For an affordable premium, they can protectthemselves from downside risk, while still benefiting from theupside when home values appreciate. The typical Oklahoma house [forexample] could be insured for $20 to $25 per month.”

Ryles told The Oklahoman the company plans to obtainlicensure in Georgia next.

“Ohio represents 'the middle of the road' of the nationalhousing crash,” Ryles said. “Oklahoma has seen light depreciation,and Georgia, specifically the Atlanta area, has experienced highdepreciation. Until recently, Oklahoma has been fairly insulatedfrom the massive downturn in housing prices.”

Critics of the coverage charge that it comes “too late” and maybe of little use to the majority of homeowners.

Source: The Oklahoman