Home Inspector Bond
Home inspectors play an important role to home buyers, home sellers, and the real estate industry as whole. Therefore, it's important for them to abide by the highest standards and codes of conduct. Home inspector bonds help with that effort, and if you're planning to become a home inspector, you will likely need this particular type of commercial bond. Find all the info you need below.
What is a Home Inspector Bond?
A bond holds a home inspector financially responsible if he or she engages in unlawful or unethical behavior that causes damages to a client. Bonds provide a mechanism for states to hold unscrupulous home inspectors accountable and to ensure anyone harmed by a home inspector's action can pursue financial compensation.
How does a Home Inspector Bond work?
A home inspector must follow all state laws applicable to the home inspection process. When they don't, anyone negatively affected by their actions can file a claim against the bond for damages. Payment is guaranteed at long as the claim is valid. It's the home inspector's responsibility to pay, but if they're unwilling or unable, the company that issues the bond steps in to pay - after which that company attempts to collect whatever amount it paid settling the claim, from the home inspector who's ultimately responsible.
Who should get a Home Inspector Surety Bond?
Currently, only 10 states required home inspectors to have a surety bond. Those states include Alabama, North Carolina, and Washington among others. If you're unsure whether you need a bond, get expert information at no cost from the team at Viking Bond Service.
Who are the parties involved in a Home Inspector Bond?
Each of these surety bond agreements involves three parties:
- Principal - The home inspector. The principal bears full financial responsibility for all claims.
- Obligee - The beneficiary of the bond. Anyone who thinks their home inspector acted in an unlawful manner can seek damages by filing a claim.
- Surety - The bond company. The surety backs every bond it issues, but it's the principal's responsibility to reimburse the surety for any claim paid to the obligee.
How much does a Home Inspector Bond cost?
The cost of the bond (called the premium) is a small percentage of the total, typically 1% - 3% of the bond amount. Every state has different bond requirements, including mandates for how large the bond must be. The exact amount a home inspector pays for a bond depends on his credit. Bond applicants with bad credit should plan to pay more. With the help of Viking Bond Service, however, they won't necessarily be denied. Work with us for competitive bond premiums and options for applicants with less-than-perfect credit.
How are claims handled for Home Inspector Surety Bond?
Each claim undergoes a thorough investigation. The surety conducts the investigation to verify whether or not a claim has merit before settling it. Provided that the claim holds up under scrutiny, the surety pays the obligee without further delay. Afterwards, the surety turns their attention to the principal (the bonded home inspector). The claims process is not over until the principal settles the debt to the surety.
How to apply for a Home Inspector Bond?
A home inspector will need to complete a standard bond application. It should only take a few minutes and asks for basic information about the applicant's background, business, and financial standing. Underwriters at the bond company are trying to evaluate how risky an applicant is so they can adjust the premium price accordingly. To make that judgement, the underwriters may request additional documentation.
Viking Bond Service - A Nationally Licensed Surety bond Agency
Don't spend hours looking for a surety bond company that can offer the bond you need in the state where you live. And don't settle for unhelpful or unfriendly service either. At Viking Bond Service, we make the bonding process as accessible as possible for any home inspector who needs a bond in any state. Get the process started whenever you're ready by completing an online application. Before that, find the information and answers you're looking for by calling 1-888-278-7389 or by using the contact form on this page.
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