Abstract: The invention herein provides a warranty that indemnifies or offsets against the financial risk that a property inspection will reveal a defect that cannot or will not be rehabilitated by a seller, causing a contract contingent on a satisfactory property condition to result in the termination of a contract for the sale of the property. More particularly, the invention includes identifying a property for sale having an associated risk of a defect; recording a contract for sale having an inspection contingency; generating a warranty contract that accounts for the risk of not satisfying the contingency. The invention further include generating statistics from a population of contracts having been voided for failing to meet an inspection contingency; pricing and binding a warranty contract covering one of a prospective buyer or a seller according to a contractual interest in the property for sale and the statistics.

Abstract: The invention herein provides indemnity insurance that insures against the risk that a property inspection will reveal a defect that cannot be rehabilitated, causing a contract contingent on a satisfactory property condition to result in the termination of a contract for the sale of the property. More particularly the invention includes identifying a property for sale having an associated risk of a defect; recording a contract for sale having an inspection contingency; generating an insurance policy that accounts for the risk of not satisfying the contingency. The invention further includes generating actuarial statistics from a population of contracts having been voided for failing to meet an inspection contingency; underwriting and binding an insurance policy indemnifying one of a prospective buyer or a seller according to an insurable interest in the property for sale and the actuarial statistics.