It’s important to understand what bond insurance is and how it works if you need a policy in Snellville, GA. We provide bonds insurance at Birdsong Agency Inc.
The following are three things you need to know about bond insurance.
Bonds insurance guarantees repayment.
The number one function of bond insurance is to secure bonds. When it comes to bonds, bond insurance guarantees repayment of the principle. This means that bond insurance is set up to protect those who borrow and give them greater financial security.
Bonds insurance prevents the default of borrowers by ensuring that the principle will be repaid.
Some policies also guarantee repayment of interest.
Bonds insurance doesn’t only guarantee repayment of the principle. Bonds insurance policies can vary in terms of what types of coverage they include. There are added coverage types for those for whom coverage for repayment of the principle may not be enough.
Some bond insurance policies can offer even more coverage. Some bond insurance policies will also provide a guarantee for repayment of interest in addition to repayment of the principle.
Bonds insurance is typical when it comes to asset-backed securities or municipal bonds.
Bonds insurance is associated with certain types of financial exchanges. While bond insurance policies can vary, they are generally associated with the issuance of municipal bonds and asset-back securities in particular. Bonds insurance will most commonly be seen and offered with these types of financial agreements.
We’re here to help you at Birdsong Agency Inc. if you have more questions about bonds insurance in Snellville, GA. Get in touch with us today to inquire about our policies and learn more about bond insurance.