What is an Appraisal Management Bond?
If you are trying to license your appraisal management company, your state may require you to purchase a surety bond as a part of the licensing process. This appraisal management bond serves as a guarantee to your state licensing agency that your company will follow all state and federal laws regulating your business. In the event that a consumer suffers some damage or loss, then they may file a claim against the surety bond.
How much will I pay for an appraisal management company bond?
Each state is different when it comes to pricing for these bonds. The cost is only a percentage of the total bond amount that you need. You can get a fast and free quote for an appraisal management bond from one of our licensed agents by submitting your request. We are ready to help guide you through the surety bond process and answer any questions you have about the bonding process.
How does a surety bond work?
There are three entities involved in any surety bond, the principal, the obligee, and the surety. The principal is the person or business that is required to purchase a surety bond. The obligee is the agency that requires a surety bond to be obtained by the principal. The surety is the underwriter of the bond.
When a consumer experiences some financial loss or damage due to the actions of the appraisal management company, then the consumer can file a claim against the bond. The surety company will determine if the claim is valid. If it is a valid claim, then a payment up to the full amount of the bond will be paid out. The appraisal management company will then be liable for repaying the amount that the surety company paid out to the consumer.
How does the bond benefit my business?
If your business is in a state that requires an appraisal management bond before becoming licensed, then obtaining the bond will make the process that much easier to complete. Also, consumers have more confidence in working with a business that is bonded. Telling your potential customers that yours is a licensed appraisal management company will increase the likelihood that they will contact your company for their needs.
Not sure if your state requires a bond as a part of your licensing? Contact us today, and we will help you figure out exactly what bonds you will need for your business.