LAYOFF INSURANCE! Created to Calm Your Fears About Buying, Even If Your Job Outlook is Not Certain!
SPECIAL INSURANCE POLICIES WOULD CONTINUE CAR, HOUSE, OTHER PAYMENTS FOR A SHORT PERIOD IF YOU LOSE YOUR JOB!
What's one of the biggest fears of potential buyers of big-ticket items, such as new cars, or a new home, these days in a tough U.S. Economy? The fear of losing your job, and, with it, the inability to keep up with expensive car or house payments!
To stem that real fear, and to possibly re-fuel demand for cars, housing - even fine career clothing - many Auto Manufacturers, Home Builders, a few Real Estate Brokerage Companies, and some high-end retailers are offering special Layoff Insurance Policies. They assure the buyer that some future payments would be met if the buyer of the home or product loses his or her job.
As reported by Chicago Tribune Real Estate Columnist Mary Umberger in Sunday's paper, Korean Auto Manufacturer Hyundai began the parade in February, with an offer to continue car payments for a period of time if they car buyer lost his job to layoff. National Home Builders Lennar, Pulte Homes, Ryland Group, and Toll Brothers have put into place their own plans to reassure jittery potential home buyers. Their coverage varies from several months to two years, depending on the program chosen and the nature of the home purchase.
One new, ambitious plan comes from the California Association of Realtors. This massive Realtors trade group has set up a fund for those, across CA, who buy a home through one of its members between April and December, 2009, but later find themselves out of work.
Many conditions apply - in order to qualify, you can't retire or accept a buyout from your employer, and coverage only begins after a four-month waiting period. The Maximum Mortgage Amount Covered is $1,500 per month.
At this point, neither the Illinois Association of Realtors, nor the Chicago Association of Realtors, plan a similar incentive for its members or home buyers in Chicago and Illinois.
But one Keller Williams Real Estate Office in Plantation FL has developed its own plan. Coldwell Banker Real Estate is thinking about offering such insurance through its company-owned offices across the country as well.
With U.S. and IL Unemployment at its highest level in over 25 years, will such Layoff Insurance restore confidence among ordinary buyers worried about their job prospects?
We'll have to wait and see!
DEAN MOSS & DEAN'S TEAM CHICAGO
