Subdivision Bonds
What is a Subdivision Bond?
Mandatory public improvements that builders, developers, and individual landowners make to their property. The local authorities require a guarantee that the landowner completes the improvements. A subdivision bond obligates the principal and the surety to complete subdivision improvements.
Current Market: Subdivision bonds can be underwritten drastically different, depending on the market. It is more crucial to find the right agent for subdivision bonds than any other line of business, as it could mean the difference between approval and declination.
The Subdivision Surety Bond market has always been an up and down type roller coaster-esque marketplace for developers big and small. While the larger national developers have enjoyed the ability to procure Subdivision bonds with relative ease caused by deep pockets and political influence, the smaller developer can get squeezed out. These days the surety bond market is far more selective meaning a leaner marketplace for small developers and less choices of bond companies and agents to procure bonds through.
Special Markets: Our agency represents the best carriers when it comes to subdivision bonds. Some of our markets have a limited amount of hand picked agents they appoint. Our carriers consider risks and applicants that others would decline. Subdivision bonds are a large part of our business, which always keeps us on the look out for a great niche market to place out clients. Our market capacity is a great fit for small local builders, as well as large nationally recognized developers. When most agents are not able to find a solid bond market for smaller developers, we become the solution. Allow us to help you utilize the surety bond market and find you a surety able to write small Subdivision bonds. This will only keep a healthier working capital position for your business, allowing you to use your money where you need it, not stuck in letters of credit.
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