Systems and methods for implementing real estate value insurance

• US 7,809,591 B1
• Filed: 08/15/2008
• Issued: 10/05/2010
• Est. Priority Date: 08/15/2008
• Status: Active Grant

• Current Assignee: United Services Automobile Association
• Original Assignee: United Services Automobile Association
• Inventors: Smith, Arthur Quentin
• Primary Examiner(s): Colbert; Ella
• Assistant Examiner(s): OJIAKU, CHIKAODINAKA
• Application Number:
  US12/192,475
• Time in Patent Office: 781 Days
• Field of Search: 705/4, 705/37, 705/400
• US Class Current: 705/4
• CPC Class Codes: G06Q 30/0283 Price estimation or determination
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/03 Credit; Loans; Processing thereof
• CPC Class Codes: G06Q 40/08 Insurance
• CPC Class Codes: G06Q 50/16 Real estate

Abstract

To protect a person with a property interest in real property against a loss of market value thereof, a base market value of the real property is determined at a current time when the property interest in the real property arises or thereafter, and a number of types of events that cause the real property to lose market value as compared with the base market value are defined. A number of the defined types of events are selected, and a real estate market value policy is issued to the person at about the current time. The policy promises to compensate the person for any loss experienced by the person if the real property loses market value as compared with the base market value based on any of the selected types of events.

Claims

1. A method of protecting a person with a property interest in a piece of real property against a loss of market value of the real property during ownership of the property interest by issuing to the person a real estate market value insurance policy, the method being performed by a hardware computing device including a processor and a communication module and comprising:

identifying a number of types of events that may cause a loss in the market value of the property, each of the number of types of events occurring prior to the person selling the property interest;

estimating, by the processor, a probability of each type of event occurring during the term of the policy;

estimating, by the processor, an impact of each type of event on the market value of the property;

determining based on the estimated probability and impact of each type of event whether each type of event is to be covered by the policy;

defining in a memory of the computing device a probable loss for each covered type of event;

summing, by the processor, the defined probable losses for all of the covered types of events to arrive at an expected cost of claims for the policy;

deriving, by the processor, a premium to be paid for the policy based on the expected cost of claims;

issuing to the person the real estate market value insurance policy in return for the derived premium, the policy promising to compensate the person for any loss of market value of the real property based on any of the covered types of events, the issued policy not requiring the person to sell the property interest to establish the loss;

collecting the derived premium;

receiving a notification of an occurrence of a loss event prior to selling the property interest;

transmitting information to provide compensation to the person for a value of the loss event;

thereafter, receiving, by the communication module, a notification of a sale of the property interest;

determining that the property interest has regained at least a portion of the value of the loss event; and

collecting an offset payment to offset the compensation to the person after the sale of the property interest.

2. The method of claim 1 wherein the person with the property interest in the piece of real property is an owner of the real property.

3. The method of claim 1 wherein defining a probable loss for each type of event includes defining a maximum loss expected from such an event by multiplying a base market value for the property, the impact of the loss for the type of event, and the probability of the loss for the type of event.

4. The method of claim 1 wherein the real property is selected from land, land with improvements, and improvements without attached land.

5. The method of claim 1 wherein the market value policy covers losses not covered by a property insurance policy.

6. The method of claim 1 wherein the loss is limited to a particular time frame including at least one of a minimum amount of time and a maximum amount of time within which the loss must occur.

7. The method of claim 1 further comprising transmitting information to incur a lien on the property interest equal to some portion of the payment.

8. A computer-readable storage medium having computer-executable instructions thereon implementing a method of protecting a person with a property interest in a piece of real property against a loss of market value of the real property during ownership of the property interest by issuing to the person a real estate market value insurance policy, the method comprising:

identifying a number of types of events that may cause a loss in the market value of the property, each of the number of types of events occurring prior to the person selling the property interest;

estimating a probability of each type of event occurring during the term of the policy;

estimating an impact of each type of event on the market value of the property;

determining based on the estimated probability and impact of each type of event whether each type of event is to be covered by the policy;

defining a probable loss for each covered type of event;

summing the defined probable losses for all of the covered types of events to arrive at an expected cost of claims for the policy;

deriving a premium to be paid for the policy based on the expected cost of claims;

issuing to the person the real estate market value insurance policy in return for the derived premium, the policy promising to compensate the person for any loss of market value of the real property based on any of the covered types of events, the issued policy not requiring the person to sell the property interest to establish the loss;

collecting the derived premium;

receiving a notification of an occurrence of a loss event prior to selling the property interest;

transmitting information to provide compensation to the person for a value of the loss event;

thereafter, receiving, by the communication module, a notification of a sale of the property interest;

determining that the property interest has regained at least a portion of the value of the loss event; and

collecting an offset payment to offset the compensation to the person after the sale of the property interest.

9. The medium of claim 8 wherein the person with the property interest in the piece of real property is an owner of the real property.

10. The medium of claim 8 wherein defining a probable loss for each type of event includes defining a maximum loss expected from such an event by multiplying a base market value for the property, the impact of the loss for the type of event, and the probability of the loss for the type of event.

11. The medium of claim 8 wherein the real property is selected from land, land with improvements, and improvements without attached land.

12. The medium of claim 8 wherein the market value policy covers losses not covered by a property insurance policy.

13. The medium of claim 8 wherein the loss is limited to a particular time frame including at least one of a minimum amount of time and a maximum amount of time within which the loss must occur.

14. The medium of claim 8 further comprising transmitting information to incur a lien on the property interest equal to some portion of the payment.

15. A system that protects a person with a property interest in a piece of real property against a loss of market value of the real property during ownership of the property interest by issuing to the person a real estate market value insurance policy, the system comprising:

a portion of the system that identifies a number of types of events that may cause a loss in the market value of the property, each of the number of types of events occurring prior to the person selling the property interest;

a portion of the system that estimates a probability of each type of event occurring during the term of the policy;

a portion of the system that estimates an impact of each type of event on the market value of the property;

a portion of the system that determines based on the estimated probability and impact of each type of event whether each type of event is to be covered by the policy;

a portion of the system that defines a probable loss for each covered type of event;

a portion of the system that sums the defined probable losses for all of the covered types of events to arrive at an expected cost of claims for the policy;

a portion of the system that derives a premium to be paid for the policy based on the expected cost of claims;

a portion of the system that issues to the person the real estate market value insurance policy in return for the derived premium, the policy promising to compensate the person for any loss of market value of the real property based on any of the covered types of events, the issued policy not requiring the person to sell the property interest to establish the loss;

a portion of the system that collects the derived premium;

a portion of the system that receives a notification of an occurrence of a loss event prior to selling the property interest;

a portion of the system that transmits information to compensate provide compensation to the person for a value of the loss event;

a portion of the system that, thereafter, receives a notification of a sale of the property interest;

a portion of the system that determines that the property interest has regained at least a portion of the value of the loss event; and

a portion of the system that collects an offset payment to offset the compensation to the person after the sale of the property interest.

16. The system of claim 15 wherein the person with the property interest in the piece of real property is an owner of the real property.

17. The system of claim 15 wherein defining a probable loss for each type of event includes defining a maximum loss expected from such an event by multiplying a base market value for the property, the impact of the loss for the type of event, and the probability of the loss for the type of event.

18. The system of claim 15 wherein the real property is selected from land, land with improvements, and improvements without attached land.

19. The system of claim 15 wherein the market value policy covers losses not covered by a property insurance policy.

20. The system of claim 15 wherein the loss is limited to a particular time frame including at least one of a minimum amount of time and a maximum amount of time within which the loss must occur.

21. The system of claim 15 further comprising a portion to transmit information to incur a lien on the property interest equal to some portion of the payment.