This is not mortgage insurance, which protects lenders. This is insurance on the skin you put in the housing game.
Here's how it works: Say you put 10 percent down on a $200,000 home. Your down payment is $20,000. You pay ValueInsured a one-time premium of about $1,200. You are now insured for seven years. Three years in, your job transfers you, and you have to sell, but the value of your home has dropped. ValueInsured pays you the amount of home equity lost, up to the full $20,000 down payment.
The product, +Plus, allows you to insure up to 20 percent of your home's value at the time of purchase to a maximum insured amount of $200,000. That could be 10 percent on a $2 million home. The term is seven years, and the home must be owner-occupied, so no rental properties. The premium varies depending on the amount insured and on the state of residence.
Now comes the catch: Even if you sell your home at a loss, you might not be able to recoup all of your lost equity, or even any of it. That's because ValueInsured measures your home value according to a government index, and the index measures by state, not by house.
When a claim is submitted, ValueInsured will pay an amount equal to the lesser of the actual loss in sales price, loss in the state home price index as measured by the Federal Housing Finance Agency or the insured down payment. Home prices vary not just by state, but street to street. If your neighborhood's values drop more than the state's measured home price value, you would get less money back.