What Are Manufactured Housing Installation Program Surety Bonds?
The Office of Manufactured Housing Programs, along with the US Department of Housing and Urban Development (HUD), oversees the Model Manufactured Home Installation Standards Program in HUD-administered states. The licensing process includes the posting a Manufactured Housing Installation surety bond and maintenance of adequate insurance coverage, or a combination of the two. This surety bond guarantees the installer will follow the guidelines set in place by HUD.
What Is The Bond Amount For This Surety Bonds?
If an installer chooses to have bond-only coverage, the bond must be sufficient to replace the home. The minimum amount of coverage is $100,000. An alternate option to reduce the bond amount and, in turn, the overall cost, would be to obtain a $10,000 surety bond along with a $250,000 (minimum) general liability insurance policy.
How much does a Manufactured Housing Installation Surety Bond Cost?
Pricing for Manufactured Housing Installation Surety Bonds varies, and your premium will be based on the following factors:
- Amount of the bond
- Term length of the bond
- Personal credit for all owners with at least a 10% ownership stake in the business
Individuals with good credit can expect to pay between 1%-5% of the bond amount. Qualified applicants could pay as little as $100 annually for a $10,000 Manufactured Housing Installation Surety Bond. To find out how much your bond is going to cost, please complete our online application for your free, no obligation price quote.
Can I Get A Manufactured Housing Installation Surety Bond With Bad Credit?
Pacific Surety offers a wide-range of approvals, regardless of credit, for Manufactured Housing Installation Surety Bonds. With our strong surety relationships, we have the ability to approve 99% of applicants, regardless of how bad their credit is. Our knowledgeable underwriting staff will work with you to ensure you receive the lowest possible pricing for your bond. Applicants with substandard credit can expect to pay 5%-10% of the bond amount in premium. To see what rate you will qualify for, please complete our online application for your free, no obligation price quote.
Which States Require Manufactured Housing Installation Surety Bonds?
Pacific Surety proudly offers Manufactured Housing Installation Surety Bonds in all 50 states. Please contact us, and our knowledgeable underwriters will assist you in purchasing your bond.
How Do I Purchase A Manufactured Housing Installation Surety Bond?
The first step is to complete our quick online application for your free, no obligation bond quote. Submission takes only five minutes, and our underwriting staff will be in contact with you within a couple of hours with pricing. If you prefer to speak with our knowledgeable staff, please call 1-866-722-7873 and one of our Underwriters will assist you in applying for your bond.
After you receive approval, you must sign an indemnity agreement with the surety and provide payment for your bond premium. In most cases, we can issue bonds the same day we receive your signed documents and payment.
Who Does A Manufactured Housing Installation Surety Bond Protect?
Unlike insurance, which protects your business, Manufactured Housing Installation Surety Bonds protect your customers. If the principal’s (installer) actions cause any damage, a claim can be filed with the surety company for relief. If the claim is valid, the surety will pay up to the penal sum of the bond to resolve the claim. The principal is then required to reimburse the surety for all monies paid out, including any attorney fees incurred by the surety in the defense of the claim.
Claims can be detrimental to your business. Not only do they cause financial harm, they make it very difficult, if not impossible, to get bonded again.
What Are The Requirements To Get A Manufactured Housing Installation License?
The licensing requirements of HUD to obtain an installer license include 4 hours of regulations and 8 hours of installation training courses. All information pertaining to installer licensing can be found in 24 CFR Part 3286, Subpart C. In addition to the training courses, the Installer must meet at least one of the following prerequisites:
- 1,800 hours of experience in installing manufactured homes
- 3,600 hours as a supervisor in the building construction industry
- 1,800 hours as an active manufactured home installation inspector
- Completion of a one-year college educational program in a construction-related field
- A combination of experience and education that equals 3,600 hours of the above