What Is An Arizona Utility Bond?
An Arizona utility bond helps a utility company recover from its losses when someone fails to pay their utility bill. Utility companies will often require people considered high-risk to obtain one of these surety bonds before they're given access to utilities.
How Does A Utility Bond Work In Arizona?
When someone fails to pay their utility bills and begins to accrue a substantial debt to a utility company, the company may file a claim against the Arizona utility deposit bond for compensation equal to the unpaid bills. The surety agency that backs the bond guarantees payment for valid claims, meaning utility companies always have a way to get compensation for unpaid bills. The bond holder (eg. the person with unpaid bills) must pay the surety back for any settled claims.
Who Are Arizona Utility Bonds For?
The utility companies decide who needs a surety bond and for what reason. Those reasons typically fall into two categories. First, a person may need a bond because they have a history of unpaid utility bills. Second, a business may need a bond if it expects to consume large amounts of electricity, gas, or water (a beverage factory, for example). When Arizona utility bond requirements exist, someone can't get utilities activated until they prove they have a bond - so get one ASAP. Viking Bond Service can return you a quote for a bond within just 24 hours!
Who Are The Parties Involved In A Utility Surety Bond In Arizona?
- Principal - The person who gets the bond and is responsible for paying any claims made on the bond.
- Obligee - The utility company that requires the bond and has the ability to file claims against it for unpaid bills.
- Surety - The company that bonds the principal and pays the obligee. The surety is only an intermediary between the two other parties. When the surety pays for a claim, the principal must pay the debt back.
How To Get A Utility Surety Bond In Arizona
It's an easy process: Complete a bond application, submit to a credit check, supply a copy of the utility bond requirements, and, if necessary, turn over any additional documentation the surety agency asks for. The surety will create a quote for the bond price based on the application information. Pay the quoted price, and the bond activates immediately.
Bond prices (called premiums) depend on a few factors. The utility company decides how large the bond must be, referring to the total amount the bond will pay in claims. The bond company decides the size of the premium. Expect it to be a small percentage of the bond total. The applicant's credit determines the final amount, with higher credit scores meriting lower bond prices. If you're worried about bad credit hurting your chances of getting a bond, work with Viking Bond Service.
Why You Should Get Your Arizona Utility Bond From Viking Bond Service
You're focused on getting utilities turned on. The bond requirement is just a formality, and probably an unwanted one at that. We pledge to make the bond process fast and easy, and to find you a competitive price for your bond. Count on us to deliver the highest caliber of service and support - starting with your first contact!
Get An Arizona Utility Bond From Viking Bond Service
Request a quote for a bond at your convenience. If you have questions about utility bonds specifically or surety bonds generally, our team is here to help. Contact us here or call us at 1-888-278-7389.
Surety bond fraud can be costly for the parties involved. Find out more about the risks of fraudlents bonds and how to prevent them from happening to you.
You may still be able to get approved despite challenged credit.
A Performance Bond may be required to bid for, or accept a contracted job. Learn about Performance Bonds here.
Viking offers fast quotes and great rates for Auto Dealer Bonds nationwide.
