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 your Georgia termite bond needs.
What Are They?
Georgia termite bonds aren’t your usual kind of surety bonds. No government agency requires them. In fact, pest control specialists purchase them voluntarily to protect their customers. It is typical to purchase one bond per customer.
Each bond is a pest control professional’s guarantee to do any or all of the following:
- A repeat inspection at specified intervals.
- A follow-up treatment in the event of re-infestation within a certain period of time.
- Repair of termite damage that occurs after a treatment.
A Georgia termite bond does not protect the pest control specialist, only the customer for whom the bond is purchased. Failure to provide any of the services guaranteed by the bond can result in the customer filing a claim against it.
Who Needs Them?
Pest control professionals are under no legal obligation to purchase Georgia termite bonds. However, they recognize that doing so gives them a competitive advantage, particularly in attracting customers who are about to sell or buy a property. It’s common for lenders to require a termite inspection and subsequent treatment, if warranted, before approving a homebuyer’s mortgage loan application. Consequently, many pest control professionals purchase termite bonds that are transferable to the new owner when a home is sold.
Most Georgia termite bonds have a duration of two years, but the dollar amount of the bond is completely up to the pest control specialist.
Speak with a Surety Bond Professionals agent today to discuss your bonding needs.
How Do They Work?
The pest control specialist purchasing a termite bond is referred to as the “principal,” and the bonding company issuing the bond is called the “surety.” The surety bond agreement that is the basis for a Georgia termite bond is a legally binding contract between the principal and the surety.
If the customer files a claim against a Georgia termite bond because the principal failed to provide guaranteed services, the surety will investigate to make sure the claim is a valid one before approving it for payment.
Under the terms of the termite bond contract, the principal bears full legal responsibility for paying valid claims. In practice, however, the surety usually pays a valid claim on behalf of the principal and waits for reimbursement of the resulting debt by the principal. This practice works to the claimant’s advantage because the claim is paid quickly, and it benefits the principal, who is able to repay the debt to the surety in manageable installments instead of in one lump sum.
What Do They Cost?
Georgia termite bonds are sold for a premium that is a small percentage of the total bond amount. Perhaps the most important factor influencing the premium rate set by the surety is the principal’s personal credit score. A high credit score is a good indication that the principal won’t need to be pursued for repayment of the debt.
Other key factors the surety considers in setting the premium rate include:
- The bond’s term (duration).
- What services are guaranteed.
- Whether or not the bond is transferable.
- Whether damage repairs are covered.
- How prevalent termite infestations are in the area.
In general, the higher the principal’s credit score, the lower the premium rate.
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Our surety bond professionals will get you the Georgia termite bond you need at a competitive rate.