Systems and methods for implementing real estate future market value insurance
First Claim
1. A method for protecting a person against a loss with respect to an expected future market value of real property prior to or at a predetermined time in the future, the method comprising:
- providing a processor;
defining events that have a statistically relevant effect on market value over time;
modeling, using the processor, the events to determine the expected future market value for the real property prior to and at the predetermined time, wherein the expected future market value represents an increase over a present fair market value;
defining a premium amount for a policy to protect against the loss based on the likelihood that the real property will attain the expected future market value at the predetermined time;
determining, using the processor, an actual market value of the real property prior to or at the predetermined time, wherein the actual market value of the real property prior to or at the predetermined time is less than the expected future market value for the real property prior to or at the predetermined time;
determining, prior to or at the predetermined time, that the loss has occurred, wherein the loss is equal to the actual market value of the real property prior to or at the predetermined time less the expected future market value prior to or at the predetermined time;
receiving a notification that the real property was conveyed in an arm'"'"'s length transaction; and
thereafter, covering the loss.
1 Assignment
0 Petitions
Accused Products
Abstract
A method and mechanism that protect a person with a property interest in a piece of real property against a loss of expected future market value of the real property. A policyholder may first select an expected future market value for the real property and a time period in which the expected future market value is to be attained (e.g., 10 years). An insurer may model relevant conditions, factors and events that effect property values over time for a particular geographic region. A premium may be determined based on the selected expected future market value and the determination of expected future market value made by the insurer. Upon a conveyance of the real property at the time period or window specified, a loss may be determined if the fair market value of the real property is less than the selected expected future market value.
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Citations
17 Claims
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1. A method for protecting a person against a loss with respect to an expected future market value of real property prior to or at a predetermined time in the future, the method comprising:
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providing a processor; defining events that have a statistically relevant effect on market value over time; modeling, using the processor, the events to determine the expected future market value for the real property prior to and at the predetermined time, wherein the expected future market value represents an increase over a present fair market value; defining a premium amount for a policy to protect against the loss based on the likelihood that the real property will attain the expected future market value at the predetermined time; determining, using the processor, an actual market value of the real property prior to or at the predetermined time, wherein the actual market value of the real property prior to or at the predetermined time is less than the expected future market value for the real property prior to or at the predetermined time; determining, prior to or at the predetermined time, that the loss has occurred, wherein the loss is equal to the actual market value of the real property prior to or at the predetermined time less the expected future market value prior to or at the predetermined time; receiving a notification that the real property was conveyed in an arm'"'"'s length transaction; and thereafter, covering the loss. - View Dependent Claims (2, 3, 4, 5, 6, 7)
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8. A system of protecting real property against a loss of expected future market value, comprising:
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at least one subsystem that determines conditions that affect real property values in a geographic region where the real property is located; at least one subsystem that creates a model of the conditions to determine the effect each condition has on real property value over time; at least one subsystem that applies the model to a present fair market value of the real property; at least one subsystem that determines the expected future market value of the real property at a future date, wherein the expected future market value represents an increase over the present fair market value; at least one subsystem that determines the loss to be an amount by which an actual market value of the real property on the future date is less than the expected future market value; and at least one subsystem that issues an insurance policy to cover the loss in the event that the real property is conveyed in an arm'"'"'s length transaction on or after the future date. - View Dependent Claims (9, 10, 11, 12)
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13. A system of protecting real property against a loss of expected future market value, comprising:
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at least one subsystem that models conditions that have a statistical effect on real property values in a geographic region; at least one subsystem that applies the modeled conditions to the real property to determine a distribution curve of the expected future market value of the real property at a future date, wherein the expected future market value represents an increase over a present fair market value; at least one subsystem that determines a premium associated with a policy to protect against the loss based on a selected expected future market value along the distribution curve; at least one subsystem that determines an actual market value of the real property at the future date, wherein the actual market value of the real property at the future date is less than the expected future market value for the real property at the future date; at least one subsystem that determines that the loss has occurred at the future date, wherein the loss is equal to the actual market value of the real property at the future date less the expected future market value at the future date; and at least one subsystem that covers the loss at the future date in the event of a conveyance of the real property. - View Dependent Claims (14, 15, 16, 17)
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Specification