Systems and methods for implementing real estate future market value insurance

• US 8,706,589 B1
• Filed: 01/05/2011
• Issued: 04/22/2014
• 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, Billman, Bradly Jay
• Primary Examiner(s): Ojiaku, Chika
• Application Number:
  US12/985,268
• Time in Patent Office: 1,203 Days
• Field of Search: None
• US Class Current: 705/35
• CPC Class Codes: G06Q 30/0278 Product appraisal
• CPC Class Codes: G06Q 40/00 Finance; Insurance; Tax strategies; Processing of corporate or income taxes
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/06 Asset management; Financial planning or analysis
• CPC Class Codes: G06Q 40/08 Insurance

Abstract

A method for protecting against a loss in market value of real property includes providing a computer having a computer processor and modeling, using the computer processor, events to determine an expected future market value for the real property. The method also includes defining a premium amount for a policy to protect against a loss defined by a difference between a market value of the real property at a predetermined time and the expected future market value and determining, using the computer processor, the market value of the real property at the predetermined time. The method further includes determining, using the computer processor, that the loss has occurred and thereafter, covering the loss.

Claims

1. A method for protecting against a loss in market value of real property, the method comprising:

providing a computer having a computer processor;

modeling, using the computer processor at a first time, events to determine an expected future market value for the real property;

defining a premium amount for a policy at the first time to protect against a loss defined by a difference between a market value of the real property at a predetermined time after the first time and the expected future market value calculated at the first time;

determining, using the computer processor, the market value of the real property at the predetermined time;

determining, using the computer processor, that the market value of the real property at the predetermined time is less than the expected future market value calculated at the first time, indicating that the loss has occurred; and

thereafter, making a payment to cover the loss without transfer of the real property, wherein the payment incurs a lien on the real property so as to offset the payment with any future gain when the real property is sold.

2. The method of claim 1 wherein modeling comprises defining statistically relevant effects on market value over time for a particular geographic location.

3. The method of claim 1 wherein the expected future market value is modeled as a distribution curve and the distribution curve is used to set the premium amount for the policy.

4. The method of claim 3 further comprising updating, using the computer processor, the modeling on a periodic basis to reflect changes in the events.

5. The method of claim 1 wherein the events include at least one of a recession, real estate crash, infrastructure changes, population growth, job growth, land deformation, school quality, inflation, mortgage rate trends, or access to recreational facilities.

6. The method of claim 1 wherein determining the expected future market value comprises use of a present market value and a historical appreciation.

7. The method of claim 1 wherein the loss is based on overall market conditions external to the real property.

8. The method of claim 1 wherein the covered loss includes a devaluation arising from a specific action related to the property, which is not covered by a traditional property insurance policy, the specific action comprising at least one of a loss of a natural feature on the property, a loss of a view, or a commencement of an objectionable activity on an adjacent property.

9. The method of claim 1 wherein the premium amount is determined based at least on a likelihood that the real property will attain the expected future market value at the predetermined time.

10. A system for protecting against a loss in market value of real property, the method comprising:

a computer having a computer processor;

a modeler operable to model events at a first time to determine an expected future market value for the real property;

a premium engine operable to define a premium amount for a policy at the first time to protect against a loss defined by a difference between a market value of the real property at a predetermined time after the first time and the expected future market value calculated at the first time;

a market value engine operable to determine the market value of the real property at the predetermined time and that the market value of the real property at the predetermined time is less than the expected future market value calculated at the first time, indicating that a loss has occurred; and

a communications module including non-transitory computer-readable media and operable to;

receive a notification that the loss has occurred; and

transmit information to make a payment to cover the loss without transfer of the real property, wherein the payment incurs a lien on the real property so as to offset the payment with any future gain when the real property is sold.

11. The system of claim 10 wherein modeling comprises defining statistically relevant effects on market value over time for a particular geographic location.

12. The system of claim 10 wherein the expected future market value is modeled as a distribution curve and the distribution curve is used to set the premium amount of the policy.

13. The system of claim 12 further comprising updating, using the computer processor, the modeling on a periodic basis to reflect changes in the events.

14. The system of claim 10 wherein the events include at least one of a recession, real estate crash, infrastructure changes, population growth, job growth, land deformation, school quality, inflation, mortgage rate trends, or access to recreational facilities.

15. The system of claim 10 wherein determining the expected future market value comprises use of a present market value and a historical appreciation.

16. The system of claim 10 wherein the loss is based on overall market conditions external to the real property.

17. A non-transitory computer-readable storage medium comprising a plurality of computer-readable instructions tangibly embodied on the computer-readable storage medium, which, when executed by a data processor, provide protection against a loss in market value of real property, the plurality of instructions comprising:

instructions that cause the data processor to model events at a first time to determine an expected future market value for the real property;

instructions that cause the data processor to define a premium amount for a policy at the first time to protect against a loss defined by a difference between a market value of the real property at a predetermined time after the first time and the expected future market value calculated at the first time;

instructions that cause the data processor to determine the market value of the real property at the predetermined time;

instructions that cause the data processor to determine that the market value of the real property at the predetermined time is less than the expected future market value calculated at the first time, indicating that the loss has occurred; and

instructions that cause the data processor to thereafter, make a payment to cover the loss without transfer of the real property, wherein the payment incurs a lien on the real property so as to offset the payment with any future gain when the real property is sold.

18. The non-transitory computer-readable storage medium of claim 17 wherein the instructions that cause the data processor to model events further comprises instructions that cause the processor to define statistically relevant effects on market value over time for a particular geographic location.

19. The non-transitory computer-readable storage medium of claim 17 wherein the expected future market value is modeled as a distribution curve and the distribution curve is used to set the premium amount of the policy, the system further comprising instructions that cause the processor to update the modeling on a periodic basis to reflect changes in the events.