Land Value Insurance Law and Legal Definition
Land value insurance refers to indemnifying a land owner against loss by depreciation in value over a period of years. A person before buying a property can request the seller to furnish him/her with a land value insurance along with the purchase deed. The buyer is guaranteed with value and title of the land as the land that purchased is value insured.
The following is an example of a state statute (California) which describes the prohibition against guaranteeing or insuring land values:
Cal Ins Code § 12660, any person who in this state engages in the business of guaranteeing or insuring land values, or who solicits or negotiates in this state for the purpose of, or in any manner aids, any person within or without this state to engage in such business, is guilty of a public offense and punishable by imprisonment in the state prison, or in the county jail for not exceeding one year, or by fine not exceeding ten thousand dollars ($10,000), or by both such fine and imprisonment.
