What is a Maryland Home Improvement Contractor Bond?
Know the importance of this surety bond and how to easily obtain one!
What is a Home Improvement Contractor Bond?
The surety bond is required upon the application for license, and will be for the benefit of the Maryland Home Improvement Guaranty Fund.
The surety bond will serve as a guarantee to the Maryland Home Improvement Commission that the home improvement contractor will compensate any person in the event of the following:
- The home improvement contractor fails to perform the necessary contractual obligations.
- The home improvement contractor violates the Maryland Home Improvement Law and the rules enforced by the Maryland Department of Labor, Licensing, and Regulation.
- The homeowner suffers monetary losses because of poor workmanship.
When this happens, the Obligee (beneficiary of the surety bond) will file a claim to recover the amount necessary to compensate the homeowner or any person who has been harmed by the Principal’s (home improvement contractor) misconduct.
What is the Home Improvement Contractor Bond amount?
The bond amount is $20,000.
If you have an excellent credit score, you will be eligible to pay for a low bond premium or as low as 1% of the bond amount!
Check out what you need to pay by getting your FREE SURETY BOND QUOTE HERE!
How can I get a Home Improvement Contractor Bond?
In order to secure this type of bond, the license applicant must seek the assistance of a surety bond company.
You will be asked to apply for this bond. If you’re ready to apply for one right now, you may easily do so HERE!
Once the application is received, the surety bond company will immediately process it. In our case, one of our expert surety bond agents will guide you through the whole process from the time you applied for the bond. We will make sure that you understand all the conditions before we issue the bond.
An underwriter will then evaluate the following:
- Your financial strength
- Your job/business performance history
- Your credit score
Once the prequalification process is fulfilled, we will execute the bond and send it to you!
What are the surety bond conditions?
- The surety bond should be issued by a surety bond agent or company that is authorized to conduct business in the State of Maryland
- The State of Maryland will be named as the Obligee
- The licensed home improvement contractor must obey the provisions of the Maryland Home Improvement Law, the rules and regulations of the Maryland Department of Labor, Licensing, and Regulation, and the Maryland Home Improvement Commission
- If the licensed home improvement contractor commits a violation, the Obligee will be eligible to file a claim against the bond for the benefit of the aggrieved party