Multiple listing services (MLS) have a lot of data, and one technology company thinks they’ve found a new way to use it.
Real estate data company StreetWire partner with the Northern California MLS MetroList to produce an insurance product called Home Value Lock. It is designed to protect homeowners from falling home prices.
Coverage is good for three years after the closing date of the home purchase, and insurance covers up to 10% of the original purchase price. StreetWire believes Home Value Lock will reduce the risk of losing money on a home purchase in situations where a family has to move unexpectedly.
“Home Value Lock is an important step towards innovation that is much needed in the housing sector after the wave of funding and regulatory changes that have followed the recent reforms. National Association of Realtors in the courts,” MetroList CEO Dave Howe said in a statement. “We believe MLS data is underutilized in the financial services sector, and the introduction of Home Value Lock will prove its great value proposition.
The company provides an example of how the product works. A person buys a house for $500,000 but then decides to sell it because of moving or because of a growing family. If the home’s value drops 10% after purchase, the insurance claim will pay $50,000, or 10% of the original sales price.
To get the payment, the homeowner will first need to sell the house. They must add coverage within 30 days of purchasing the home. Home Value Lock is currently only available in California.
“As a data modeling network, we have a deep understanding of the power and value of MLS data to better identify patterns in the real estate market,” StreetWire CEO Oliver Tickner said in a statement. “Our goal is to redefine the value of that dataset for financial services.”
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