Deposit indemnity insurance protects large sums of money

When you're in the process of buying a new property, a large deposit is usually required by the seller to safeguard the deal. This is not always easy to arrange, especially when a lot of your finance is tied up in other assets. Deposit indemnity insurance is a hassle free way of satisfying the lender's demands for a deposit without having to cash in on your investments.

There are many advantages to deposit indemnity insurance. One of the biggest is the speed and ease with which it can be aplied for. Almost every insurance company that offers deposit indemnity insurance has an online facility where you can apply for a quote. Applications are usually processed within 24 hours so that you can quickly enter into an agreement with a seller, without missing out on a fantastic deal.

Deposit indemnity insurance is significantly more affordable than short term finance. Getting short term finance approved is often a laborious process with the prospect of high interest rates to be paid. Deposit indemnity insurance requires only a once-off fee and is much more economical than other methods of financing a deposit.

For properties that are sold at auction, deposit indemnity insurance is ideal. Because it's issued before the auction begins, you can get approval for it from the seller before the sale takes place. The amount which the policy covers is completed, the property and the seller's details are left open and can be completed by the buyer if the property is bought. Should the bid be unsuccessful, the buyer may use the policy at future auctions.

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