This product is not insurance. It is a contract against the loss of home equity based on measurements of general declines in home values in designated areas. Home sellers can purchase equity protection for the home buyer's benefit as an additional buyer incentive. Current homeowners can purchase it as a protection against possible declines. These plans are usually subject to a set number of months of ownership (waiting period) that must pass following purchase of the plan before a claim can be made. The value of the individual home is not considered in determining if a loss has occurred. Instead, any equity protection payout is based on the general market decline in the area where the home is located. The equity protection payout is made only when the home is sold.