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I'm searching for an insurance policy to protect against negative equity on a residential real-estate.

The risk I'm trying to protect against is that house prices will fall.

I'm looking for something like this: https://www.professionaladviser.com/ifaonline/news/1321187/brokers-offer-insurance-negative-equity

Homeloan Partnership (HLP), the mortgage network, has signed a deal with Equity Protection Policy (EPP) which would give homeowners access to a new insurance product which protecting them against a sudden fall into negative equity.

But I cannot find the policy on their website: https://www.hlpartnership.co.uk/ 🤔

This is especially true with Help to Buy (assume this question is located in the United Kingdom):

  • access to cheap credit, pumping the prices
  • properties are by definition newly built, therefore there is no opportunity for improvements to increase the value

Background, definitions (not really a core question)

Definition on the wiki: https://en.wikipedia.org/wiki/Home_equity_protection

The protection is for a new or existing homeowner that wishes to protect the value of their home from future market declines.

When searching for negative equity, I get plenty of results but not a single mention of an insurance product:

It’s estimated that there are around half a million properties in negative equity in the UK, although some areas are affected far more than others.

Clearly such term exist, it is well defined.

UK House Price Index shows that prices go up and go down:

enter image description here

http://landregistry.data.gov.uk/app/ukhpi/browse?from=1969-05-01&location=http%3A%2F%2Flandregistry.data.gov.uk%2Fid%2Fregion%2Funited-kingdom&to=2019-05-01


Somoeone asking on the forum: Where Can I Get Insurance Against House Price Falls?

https://www.housepricecrash.co.uk/forum/index.php?/topic/31514-where-can-i-get-insurance-against-house-price-falls/

Can you get insurance against the value of your stock portfolio falling, or the price of gold dropping?

Well, you can, various financial products, derivatives, futures, options. I'm not an expert, just playing bullshit bingo.


Big Short

enter image description here

https://youtu.be/Q89eZka94NU?t=45

My one concern is that when the bonds fail... I want to be certain of payment in case of solvency issues of your bank.


How can I get such insurance?

EDIT / UPDATE: Seems like I've been downvoted. I understand the question includes background, definitions (not really a core question) but there is a reason to provide background information, so that you can better understand the situation and correct any potential mistakes.

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    Seems like this is asking for a product or service recommendation. Such questions are off topic. – Robert Longson Jun 30 at 13:07
  • I think it's more asking for general advice on how to get that kind of product, rather than a specific recommendation. It's very long and hard to follow though. – Ganesh Sittampalam Jun 30 at 13:21
  • Correct. I wasn't able to find such a product, not sure if such a product exists. Provided context and background information so that anyone is in a position to better understand the essense of the question. – Mars Robertson Jun 30 at 13:49
  • this negative equity insurance exists in the UK, i suggest using google UK to find the link as i dont think i can put the link here – rich99 Jun 30 at 22:35
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    Like too many articles on the web, the first one you reference (announcing the availability of the product) isn't dated. However, towards the end it says "but it [is] only available through HLP intermediaries, who formally started trading under the network on 1st October 2001". If the announcement/product was from prior to 2008, then events of that year probably killed it as a viable product (as you say, there is no mention of it on their website). Even if it was later, the assumption must be that it is no longer (if ever) a profitable product. – TripeHound Jul 1 at 7:36

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