Companies put a new twist in home owner insurance

Some builders and real estate companies are offering consumers some additional piece of mind in the form of a new kind of home owner insurance that protects them in the event of a layoff.

According to an Associated Press report, one example of the insurance would cover mortgage payments up to $2,500 for up to six months the first two years after buying a house. The plans are said to be organized by a nonprofit group called the Rainy Day Foundation, which told the wire service that on average, it is adding one new builder a day to its program.

The plans are reminiscent of similar recession-inspired promotions from several leading car companies, where people who lose their jobs are eligible for payment protection.

"It's for those who perhaps are not feeling themselves in imminent danger but just want that extra safety net," Kira McCarron of the Toll homebuilding company told the wire service.

Considering the state of the economy, this new twist on home owner insurance may not be a bad idea for some people. A Forbes report notes that the national foreclosure average is about 3 percent, and 14 percent for subprime mortgages.

For more information on protecting your family with home owner insurance, visit InsureMe.com.