FAQs
I've been offered "Deposit Insurance" - do I really need it?
Like any insurance the answer is hopefully not! Insurance is there for when something goes wrong - but unfortunately things do go wrong from time to time, companies cease to trade & customers lose their deposits - there are stories in the paper every week. Any reputable company should include this cover - like the guarantee insurance in a previous question this shouldn't be a chargeable extra. The standard deposit in the industry is 25% - we're not aware of any Deposit Insurance that will cover more than 25%. In addition many insurances have limits, make sure that the cover you are offered is enough for your deposit. If you are asked for more than 25% as a deposit question why - is the contractor using your money to fund their business? This is not a good sign.
Obviously when you hand over your deposit you should get a 'contract' or written record of your deposit .
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Like any insurance the answer is hopefully not! Insurance is there for when something goes wrong - but unfortunately things do go wrong from time to time, companies cease to trade & customers lose their deposits - there are stories in the paper every week. Any reputable company should include this cover - like the guarantee insurance in a previous question this shouldn't be a chargeable extra. The standard deposit in the industry is 25% - we're not aware of any Deposit Insurance that will cover more than 25%. In addition many insurances have limits, make sure that the cover you are offered is enough for your deposit. If you are asked for more than 25% as a deposit question why - is the contractor using your money to fund their business? This is not a good sign.
Obviously when you hand over your deposit you should get a 'contract' or written record of your deposit .
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