What Is an Indemnity?

An indemnity is your protection against a loss. Many high-risk activities, like skydiving, etc., require you to sign an indemnity agreement. It states the principal will indemnify the surety should a claim occur.

Indemnification is the process that makes the situation whole again, or in other terms, covers the losses. For example, if a surety pays out on a claim of $20,000, the principal needs to indemnify the surety by repaying the $20,000. Most business owners need to sign an indemnity agreement. Sometimes only the best applicant will need to sign.

Gap Indemnity

In short, a gap indemnity covers the other party's back. During a sit-down closing, the title insurer will make sure that nothing happens during the meeting that causes the title policy insurance holder a loss - that is where we come in. We will help you cover a loss, damage, or liability incurred from a covered event. It is another way of saying that we will pay for the loss you incur.

A gap is any space between ownership or a period between rights, for example, on a deed. In this case, Ortegon Insurance Agency, LLC will ensure the gap between the recorded dates depicted on the documents, so everything is accounted for.

Who Takes Out the Gap Indemnity Service?

The seller does. A seller takes out the indemnity insurance policy to cover the costs of any potential claim that a buyer puts up against the property. Indemnity insurance from Ortegon Insurance Agency, LLC never expires and is done with a one-time fee for your convenience.

Why Do You Need a Gap Indemnity Policy?

Having a gap indemnity insurance policy helps to cover any legal deficit with a property that cannot be quickly resolved or would be costly/time-consuming to solve. Instead of trying to solve the problem on your own, investing in our specialized gap indemnity policies will protect you from any expensive bills you may incur in the future.