Home Dealer Bonds
What is a Home Dealer Bond?
Home Dealer Bonds are required by some state governments of manufactured (mobile) home dealers. Similar to auto dealer bonds, the bond guarantees the dealer will operate per the terms of the state license.
Current Market: Home dealers and auto dealers are quite different in what they sell. Unfortunately, for manufactured home dealers, they are underwritten very similarly by the bonding companies. Both are considered a higher risk commercial bond in comparison to other bond requirements. In fact, some states have the same bond form for both professions. Excellent rates are available for those who qualify, if your agent knows the ever changing surety marketplace. However, many home dealers may be stuck in high risk programs if their personal credit does not meet the surety's standards.
Special Programs: This particular class of business is not required by all states. Therefore, the quantity of applications for home dealer bonds is rather low. There are no specialty programs for standard market applicants, nor will there be anytime in the forseeable future. However, like other commercial surety bonds, those who do not qualify in the standard surety market can usually obtain a bond in the specialty high risk programs.
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