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View all of the Alabama Surety Bond products that we offer at Single Source Insurance. This includes those for Birmingham, Mobile, Montgomery, Huntsville, and all others. Find Dealer Bonds required by the AL department of Revenue, Mortgage Bonds, Court Bonds and more. Simply fill out an application with our Alabama bonding company online, and you'll receive a quick turnaround!
There�s no doubt that Alabama�s climate makes it an attractive environment for termites. Many Alabama homeowners rely on pest control companies to keep their homes termite-free. In addition, lenders typically require a termite inspection and any necessary treatments as a prerequisite for approving a mortgage.�
People who have had a home inspected and treated want to know that they will have no reason to worry about a termite problem in the near future. An Alabama termite bond provides that assurance.
(NOTE: This type of termite bond is not to be confused with the Alabama Termite Control surety bond required by the Commissioner of Agriculture and Industries. That bond is a type of license bond that guarantees a pest control company�s compliance with all applicable laws, rules, and regulations governing the application of pesticides.)
Pest control companies purchase termite bonds voluntarily to protect their customers�a separate bond for each customer. Although Alabama termite bonds are purchased voluntarily, most companies that do termite inspections and remediation recognize that being bonded is a competitive necessity.
In the lingo of the surety bond industry, the pest control company is referred to as the �principal� and the company that underwrites and issues a termite bond is called the �surety.� An Alabama termite bond serves as the principal�s guarantee to perform regular termite inspections for as long as the bond is in force and to take care of any termite problems that surface during that time (typically two years).
The specific services offered and the frequency of inspections are spelled out in the contract between the principal and each client. Homeowners typically look for a guarantee that can be transferred to the new owner if they sell their home.
When the surety issues a termite bond, a credit line is established by the surety to be used as a source of funds for paying claims. If the principal fails to provide the services the client is entitled to, or otherwise breaches the contract established with the client, the client has the right to file a claim against the Alabama termite bond.
Unless the surety can negotiate an amicable settlement, the surety will pay the claim, creating a debt that the principal is legally obligated to repay. It�s an arrangement that compensates the client in a timely manner and allows the principal to repay the surety in installments over a given period of time.
The cost of an Alabama termite bond is a small percentage of the dollar amount of the bond (the bond�s penal sum). That percentage, the premium rate, depends on the bond�s duration and dollar amount and the surety�s assessment of the risk involved in extending credit to the principal. The surety�s risk�?assessment is based largely on the personal credit score of the business owner. The better the principal’s credit, the lower the premium rate, which can be as low as 1% for a principal with good credit.
Request a convenient online quote today, or discuss your Alabama termite bond needs with one of our experienced surety bond specialists.
