Real estate devaluation insurance
First Claim
1. A method of protecting a real estate investor comprising the steps:
- a) offering a real estate investor an insurance contract insuring against a loss incurred through the sale of real property, a loss being defined as a sale of said real property at a Future Sale Price below a Shelter Value, a Basic Loss being defined according to the equation Basic Loss=Shelter Value minus Future Sale Price;
b) establishing said Shelter Value for said real property on an initial day;
c) providing at least one method within said insurance contract for determining, at a future time, a Final Market Value for said real property, wherein said Final Market Value is used to determine a Maximum Reimbursable Loss according to the equation;
Maximum Reimbursable Loss=Shelter Value minus Final Market Value; and
d) accepting said insurance contract;
wherein an indemnity award to said real estate investor is to be calculated from a lesser of said Basic Loss and said Maximum Reimbursable Loss, wherein said real property is a particular type of property.
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Accused Products
Abstract
An insurer insures a real estate investor against a market devaluation of real property. A Shelter Value is established in the insurance contract either by the purchase price or an initial appraisal of the real property. If the real estate investor sells the property at a market loss, the insurer reimburses the client the difference between the Shelter Value and the sale price of the property. The insurer is protected against fraudulent, negligent, or bad faith conveyances by establishing within the contract a means for determining a Maximum Reimbursable Loss according to a Final Market Value of the home. If the sale price is greater than the Shelter Value, no indemnity is paid the client. If the sale price is below the Shelter Value but above the Final Market Value, the client is awarded the difference between the Shelter Value and the sale price. If the sale price is below the Final Market Value, the Maximum Reimbursable Loss that can be paid as an indemnity is the difference between Shelter Value and the Final Market Value. The Final Market Value can be determined by a Terminal Appraisal of the property at the time of the sale, or alternatively, by the equation
Final Market Value=Shelter Value×(ASFV2/ASFV1)
where ASFV2 and ASFV1 are respectively the Average Square Foot Values of similar property at the time of sale and the time of purchase of the client'"'"'s property.
66 Citations
41 Claims
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1. A method of protecting a real estate investor comprising the steps:
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a) offering a real estate investor an insurance contract insuring against a loss incurred through the sale of real property, a loss being defined as a sale of said real property at a Future Sale Price below a Shelter Value, a Basic Loss being defined according to the equation Basic Loss=Shelter Value minus Future Sale Price;
b) establishing said Shelter Value for said real property on an initial day;
c) providing at least one method within said insurance contract for determining, at a future time, a Final Market Value for said real property, wherein said Final Market Value is used to determine a Maximum Reimbursable Loss according to the equation;
Maximum Reimbursable Loss=Shelter Value minus Final Market Value; and
d) accepting said insurance contract;
wherein an indemnity award to said real estate investor is to be calculated from a lesser of said Basic Loss and said Maximum Reimbursable Loss, wherein said real property is a particular type of property. - View Dependent Claims (2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34)
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35. A method of insuring a real estate investor against a market devaluation of real property comprises the steps:
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a) offering said real estate investor an insurance contract for protecting said real estate investor against a market devaluation of said real property;
b) establishing a Shelter Value for said real property within said insurance contract;
c) promising to reimburse said real estate investor an indemnity calculated from the Shelter Value minus a Future Sale Price of said real property if a Future Sale Value is less than said Shelter Value; and
d) protecting an underwriter of said insurance contract against a sale of said real property below a Final Market Value of said real property, wherein a Maximum Reimbursable Loss that can be awarded said client is derived from the formula;
Maximum Reimbursable Loss=Shelter Value minus Final Market Value. - View Dependent Claims (36, 37, 38, 39, 40, 41)
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Specification