Developers insuring against price drops

[Jamie]

Home insurance to beat price slide

Scared about buying a home in Sydney because of plummeting house prices? Worry no longer.

Home buyers can now buy an insurance policy that will cover them for up to $50,000 if they are forced to sell their property within five years of buying it.

But there are strings attached.

The policy, which was launched yesterday, only applies when a sale is caused by accidental death, disability, redundancy, divorce, or job relocation and will be available only from the property's developers.

http://www.smh.com.au/news/national/home-insurance-to-beat-price-slide/2005/09/29/1127804613431.html

 

[alexlee]

It's just a slightly different type of income protection cover, isn't it? I'd check who's underwriting the insurance. Besides $50k isn't much if you're talking about $500k Sydney properties. I think it's just another of those 'frilly curtains' developers use to distract the buyer from the true issues.
Alex

 

[juzz]

Alexlee,

Good call.
If thats what someone wants, then there are many ways to underwrite it,
to keep the buyer happy.
It then becomes easier to make the sale & the developer should have made the 50K anyway by selling it


Justin