US-based down payment insurance provider ValueInsured secured $6.5m yesterday in a funding round co-led by reinsurer Everest Re Group.
Everest Re led the round through an undisclosed affiliate, and was joined by insurance holding company Houston International Insurance Group. The two firms had already provided $6m ValueInsured of seed funding for ValueImsured in 2014.
Founded in 2013, ValueInsured provides insurance for the down payment provided by homeowners when they buy a property, covering up to the full amount of the deposit for any loss in value that might occur by the time they choose to sell.
The company plans to use the capital to continue its current distribution partnership strategy, expand its presence across various channels and enhance the features of its +Plus down payment product.
Joe Melendez, ValueInsured’s CEO, said: “This added support will allow us to deliver down payment protection to more mortgage originators and most importantly, more homebuyers, providing them peace of mind amid unpredictable, negative changes in the housing market.”
John Doucette, president and CEO of Everest Re’s reinsurance division, added: “Having seen substantial growth, we are excited to take our relationship with ValueInsured to the next level and provide additional capital to further expand their delivery of +Plus down payment protection nationwide.”