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A Florida surety bond guarantees principal owners and the public that services will be performed with excellence and security. Florida legally requires a variety of contractors and organizations to secure bonds to conduct business across the public service industry. Single Source Insurance is a leading Florida bonding company. Apply easily online and take advantage of lowest rates. Browse the most common types of FL surety bonds, or contact us for a full list.
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What Are Replevin Bonds?
The state of Florida allows the plaintiff in a civil case involving contested property or a large debt to attach the defendant�s property before the case has been decided in court. A replevin bond protects the defendant�s attached property in the event that the plaintiff loses the case, and provides full compensation for the defendant for the loss of the attached property.
Replevin bonds are required because defendants have the right of replevin under Florida law. The statute establishing the right of replevin specifically empowers a person whose property has been �wrongfully detained� to recover the property and any damages resulting from that wrongful detention.
The plaintiff seeking to attach the defendant�s property is required to purchase a Florida replevin bond in an amount ordered by the court. The court�s concern is that the plaintiff could sell, damage, destroy, or otherwise make it impossible for the attached property to be returned to the defendant in its original condition if the case should be decided in favor of the defendant.
The required purchase amount under Florida law is the lesser of the following:
To purchase a Florida replevin bond, you�ll need to put up collateral in the form of cash or an irrevocable letter of credit from your bank in the full required amount of the bond.
At the conclusion of the court case, if the decision is in favor of the defendant and the plaintiff fails to return the attached property in the same condition it was in at the time of the attachment, the defendant can file a claim against the plaintiff�s replevin bond.
Typically, the surety bond company expedites the claims process by paying claims in advance on behalf of the bonded individual, who will subsequently reimburse the surety. In this case, because of the collateral, the surety need not be overly concerned about being repaid.
The annual premium for a replevin bond is a small percentage of the required bond amount set by the court. The surety company will set the premium rate based on the plaintiff�s credit score and overall financial strength, also taking into account the likelihood of the court deciding in favor of the defendant, which would trigger a claim.
A plaintiff with great credit could pay the standard market rate of 1% to 3%, but with poor credit, the premium rate could be as high as 15%.
?If the case has not been decided by the end of the one-year bond term, the bond must be renewed for a second year and annually thereafter until the case is completed.
Speak with one of our surety bond experts if you have been ordered by the court to obtain a Florida replevin surety bond.
