Home Price Protection 101: How It Works

Home Price Protection is an index-based program designed to help homeowners manage the risk of home price declines after they buy.

Buying a home is a big financial move—and even confident buyers can hesitate when the market feels uncertain. Home Price Protection is built for that moment: it’s a contract tied to local housing price indices (not your individual appraisal or resale price) that can trigger a cash payout if your market drops below a pre-selected threshold during the contract term.

At a high level, the idea is simple: you lock in a protection threshold at enrollment, the market index is monitored throughout your term, and if the index declines enough to cross that threshold, a payout may be issued automatically—without filing a claim or selling your home.

 

How Home Price Protection Works (Step-by-Step)

1. Check availability by location: Program availability can vary by ZIP code/market.
2. Choose your coverage terms: When you enroll, you select key contract terms—most importantly the protection amount (the potential “maximum payout”) you want.
3. Market index monitoring begins: Local housing price indices are tracked throughout your term using verified, third-party market data—separate from your mortgage and separate from your individual property’s condition.
4. If the threshold is crossed, a payout may trigger automatically: If the market index level falls below your pre-defined threshold (measured at the end of the contract term), a cash payout will be issued automatically. No claim. No appraisal. No sale required.
5. The payout is yours: If a payout is issued, it belongs to you—even if the market later rebounds.

Want the official overview from The REZILOANS Team? Visit the Home Price Protection page to see how the program fits alongside your mortgage plan.

 

What This Program Is (and Isn’t)

• It is: a contractual, market-based financial protection tool designed to help offset certain downside market moves.
• It isn’t: a mortgage loan, a refinance, a second lien, shared-equity, or a replacement for homeowner’s insurance.

Importantly, Home Price Protection does not change your mortgage interest rate, loan approval, monthly payment, or ownership rights.

 

Frequently Asked Questions

Is Home Price Protection a mortgage loan?

No. Home Price Protection is not a mortgage loan and does not replace home financing. It’s a separate financial protection product designed to help manage the risk of potential declines in local home prices.

What exactly is being “protected”?

Protection is tied to a local housing price index for your market area—not your home’s individual resale price. The contract is designed to respond to broader market movement (up or down) rather than property-specific factors.

How is a payout determined?

A payout may be triggered if the housing price index for your selected market falls below the protection threshold pre-defined at enrollment, according to the contract’s terms.

Do I need to file a claim to get a payout?

No. If the contract conditions are met, a payout can be issued automatically. You don’t need to submit a claim.

Do I have to sell my home to receive a payout?

No. A payout does not require selling your home. The program is designed so you can receive a cash distribution without a sale.

What happens if home prices go up instead of down?

If prices remain stable or increase during the contract term, no payout is triggered. You simply benefit from the peace of mind of having protection in place.

If I receive a payout and the market later recovers, do I have to pay it back?

No. Once issued, the payout is yours, and there are no clawbacks if the market rebounds later.

How long does it take to enroll?

Enrollment is typically quick and can often be completed in just a few minutes, with pricing and contract terms disclosed upfront.

Are there ongoing fees?

The protection costs are built into the contract price, meaning there are no additional ongoing fees beyond the initial purchase—unless you choose to renew, per the contract’s terms.

Is there a maximum payout?

Yes. Maximum payout terms can vary by contract, and some program guidelines reference a maximum payout cap (often up to $100,000). Your specific maximum payout is selected and documented at the time of purchase.

Who is Home Price Protection best for?

It may be a fit for first-time buyers, move-up buyers, and anyone purchasing in a market where short-term uncertainty is a concern—especially buyers who want an added layer of confidence while they focus on long-term homeownership goals.

 

Conclusion

Home Price Protection is a straightforward, market-index-based way to add confidence to your home purchase strategy—especially when you want downside awareness without changing your mortgage.