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Roofing Contractor Surety Bonds

The roof is an essential and integral part of any building, and shoddy work can result in tragic losses. So, many states and counties require a specific contractor surety bond, known as a roofing bond, before a roofing contractor can get to work. Read on to learn all about bonded roofing for contractors.

What is a Roofer License Bond?

A roofer license bond is a surety bond often required of roofing contractors before they can begin work on a project. It ensures that the roofer will abide by all applicable state and county laws and regulations at every point in the project. The contract bond provides a financial incentive for the contractor to complete the work in full, on time, and in accordance with all regulations. It also provides a mechanism for clients to get financial compensation if the contractor fails in their duties.

A roofing bond is not an insurance policy. Many states require roofing contractors to show proof of insurance and to obtain a surety bond. Where needed, it is not legal for roofing work to be done without the appropriate bond. Whether you work on a massive city project or a small home improvement contract, roofing contractors must follow state and county laws.

How Does a Roofing Contractor Surety Bond Work?

Like all surety bond types, a roofing bond involves three parties:

  • The Principal - This is the roofing contractor who secures the bond.
  • The Obligee - This is the government entity that requires the bond.
  • The Surety - This is the insurance company that underwrites the bond.

If a bonded roofing contractor's customer alleges wrongdoing or a failure to complete the contract, they can make a claim against the roofing bond. The surety company will then thoroughly investigate the charges. If they find in favor of the complainant, they will pay the claim up to the bond's full value. Then, they will seek repayment from the roofer. But they will dismiss the claim if they find the roofer to be blameless.

Who Needs a Roofing Contractor License Bond?

Some of the states requiring a roofing contractor license bond are:

  • Arizona
  • California
  • Illinois
  • Minnesota
  • Oklahoma
  • Texas

However, city, county, and state roofer license requirements vary across the country. If you are unsure whether you must obtain a roofer bond, contact your state contractor license board.

Roofer License Bond Cost

The cost of a roofing bond is a tiny fraction of the bond's value. Typically the range is 1% - 5% of the bond value. So, a roofer in Oklahoma must have a $5,000 bond, which would cost between $50 - $250. But in Texas, the required bond is $100,000, so the surety bond cost would range between $1,000 and $5,000. The better your credit score, the lower the premium you will pay.

How to Get a Roofing Contractor Surety Bond?

At Viking Bond Service, we make it easy to obtain a surety bond like a roofing bond. Just complete our online bond application, and we'll get back to you with a competitive quote ASAP. Or, feel free to contact us online or by phone at 1-888-2-SURETY (1-888-278-7389). We look forward to being your bonding partner!

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