Protection specialist Equity Protection Policy UK has launched an insurance product to protect home owners from the effects of negative equity.
The Equity Protection Policy guarantees the value of a homeowner's property for a ten-year period. The level of cover chosen is fixed at outset and can be up to £10,000. It is payable as a single premium.
The policy is being marketed and distributed by the company and is the result of co-operation between it, HSBC Insurance Brokers and Royal & SunAlliance.
The policy exclusions prevent any claims being made in the first three years or for the first £2,500 of any negative equity.
The premium for £10,000 of cover is £630 plus insurance premium tax.
Commission is negotiable with Equity Protection Policy UK.