The company says the policy is being introduced in Ohio this week as part of a national rollout.
Company officials say it's the first of its kind and is designed to insure homeowners against steep losses if home prices in their area drop and they sell their property for less than its insured value.
According to Home Value Insurance Co., the premium won't increase by more than 5 percent a year. The home value premium is determined by where the home is located and its value. Company officials say a typical Ohio homeowner would pay $35 to $45 a month.
The company expects to offer the policy in up to 20 states by the end of next year.