When it comes to homeowners insurance, one of the biggest decisions you’ll have to make is whether to buy a bond or policy. So, what’s the difference?
A bond is a type of insurance that provides protection against financial losses. If something happens to your home—like a fire, burglary, or natural disaster—the bond will help pay for the damages. However, there are some important things to keep in mind. First, bonds only cover specific risks, like damage from fires or burglaries. They don’t offer protection from all types of losses, like floods or windstorms. Second, bonds usually have a higher deductible than regular insurance policies. This means you’ll have to pay more out-of-pocket if you need to make a claim.
Insurance policies, on the other hand, offer more comprehensive protection. They cover a wide range of risks, including both property damage and liability risks. Policies also tend to have lower deductibles than bonds. This means you’ll pay less out-of-pocket if something happens to your home.
