Surety Bond Professionals is a family-owned and operated bonding agency with over 30 years of experience. With access to a broad range of surety markets, our expert agents are ready to assist with all of your Alabama termite bond needs.
What Are They?
Alabama termite bonds are different from most other surety bonds in that they’re not required by any state or local authority. Pest control professionals purchase them voluntarily as financial protection for their customers. They most often guarantee to re-treat the home in the event of a termite reinfestation after an initial treatment, and sometimes to repair damage to the home due to a reinfestation.
Who Needs Them?
A pest control agency will buy many Alabama termite bonds during the course of a year—one bond per termite inspection and/or treatment client. Pest control professionals purchase Alabama termite bonds because it gives them a competitive advantage over companies that are not bonded. An Alabama termite bond that is transferable to a new homeowner is perceived by potential home buyers as a real plus.
Also, termite inspection and treatment is a common requirement when a home is on the market or about to change hands. In many cases, mortgage lenders require a guarantee that the cost of further treatments or damage repair will be covered.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
Most surety bond agreements involve three parties: the “obligee” requiring the bond, the “principal” purchasing it, and the “surety” underwriting and approving the bond. In the case of a Alabama termite bond, the obligee is typically the homeowner or business requiring the termite bond, and the principal is the pest control professional.
The terms of the surety bond agreement make the principal, the pest control professional, legally responsible for paying claims. But in practice, if the principal violates the agreement, causing financial harm to the consumer protected by the bond, the injured party’s claim will be paid by the surety on behalf of the principal.
The surety pays the claimant, which creates a debt that the principal now owes to the surety and must repay. This common practice allows the principal to repay the surety in manageable installments instead of having to make one large lump sum payment to the claimant.
What Do They Cost?
There are no hard-and-fast rules for determining the price of an Alabama termite bond. What a given principal will pay for a particular bond depends on the length of the guarantee period and whether repair and treatment services or solely treatment services alone are covered. A bond that is transferable to the new owner upon sale of the home may cost more than a nontransferable bond.
Perhaps the biggest factor influencing the cost of an Alabama termite bond is the principal’s personal and business credit score. A principal with good credit is likely to reimburse the surety for claims paid on his behalf without the need for any legal action on the surety’s part. A lower risk always means a lower premium rate.
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Our surety bond professionals will get you the Alabama termite bond you need at a competitive rate.