Insure your home against a price drop

Property values have been hit hard in Ohio and the Cincinnati TriState region. Real estate experts say consumer confidence is key in getting people to buy homes. But who wants to buy when your new home may lose value in the next year?

Equity Lock Solutions , a company based both in Ohio and Denver, has announced a new product called "Home Price Protection."

The product allows a homeowner to "lock-in" a home value, based on the home price index, established by the Federal Housing Finance Agency.

A homeowner that signs up for the service can make monthly payments and protect their homes value for up to 15 years.

How it works

An example, a homeowner who's house is worth $200,000, who signs up for Home Price Protection, who then wants to sell three years later.

However, the house is now worth just $180,000, according to "home price index." After the sale of the house, the owner with Home Price Protection would be issued a $20,000 check to make up for the loss in value.

Homeowners buying the protection must pay a one-time contract fee of about 2 percent of their homes value, this fee can be spread out over 60 months, making the average payment about $ 75 per month for coverage on a $200,000 home.

Sure, it's not cheap.  And if values in your neighborhood are not dropping, you may not need this kind of protection.  But if you think you may need to move in a few years, and worry that shiny new home may be worth less than what you paid for it, this may be worth considering.

Whatever you decide to do, don't waste your money.

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