Hello, I have one question, If buy or pay for insurance security Bond 1%. I case of default do I lose my property along with 1% which I need to pay in advance?
Hello Momo, Thank you for your question. Typically, the percentage you pay in premium for the surety bond is considered fully earned within the first term and is not eligible for a pro-rated refund if canceled before the term ends. If a claim is made against your bond and the surety finds the claim to be valid, you are responsible for making the surety financially whole again after they payout to the claimant. For more information on surety bond refunds, we recommend you read our blog post here: blog.suretysolutions.com/suretynews/can-a-surety-bond-be-refunded Please let us know if you have any additional questions. Thank you.
Your terminology is a bit mixed up. First, surety bonds are not insurance and the initial premium you pay is not something you are paying “in advance”. The payment for the surety bond are more like non-refundable fees to setup up the bond, which can be viewed like a credit for the amount you want the bond to be or is required to be. There are no monthly payments and the fee must be paid in full in order to setup the bond. There is no possibility of default since this is not a loan nor and instance plan but that fee is spent no matter even if there is never a claim against that bond. They are typically for one year so the following year you will need to apply for another bond and pay the new current rate again. If someone files a claim and the Bond pays out, you have to keep in mind that this is credit that they have extended you. The Bond will pay, if they determine it’s a valid claim (with info from the person filing claim and with your info as well). You must then pay back that amount to the company that issued the bond. You can also chose to pay the claim, in full, before the bond company pays.
Hello Darrius, Thank you for your question. You can start by submitting an application for a Surety Bond on our website: suretysolutions.com/ Not every bond type requires a credit check. If you have additional questions or need assistance with getting your quote, please send us an email at info@suretysolutions.com or call us at (866) 722-9239 to speak with a bond expert. We look forward to assisting you with your Surety Bond.
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