Protection From Effects Of Declining Home Values

Property values have continued to decline in the weakened economy, homeowners spoke about protecting themselves on Friday.

It is now possible to buy an insurance policy that protects homeowners against a decline in value, Consumer 10's Kurt Ludlow reported.

Alan Hoffman of Hoffman and Associates Insurance is now offering the first regulated home value insurance in the nation.

"For a premium you could buy a policy that will cover you in case the value of your home goes down." said Hoffman, "When you go to sell your home, it would kick in and actually pay a claim for you."

There are conditions to the policy.  It requires deductibles the first two years and the homeowner could only get a payout if home values in the surrounding market decline as well and the policy only pays for a drop in value up to 25 percent.

Critics of the policy say real estate prices are not likely to drop much more, and that the insurance is too little too late.

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