What is a Replevin Bond?
Replevin is a court action to determine the rightful owner of personal property. A replevin bond allows the plaintiff to take possession of the property in question being held by the defendant before a hearing begins.
These bonds ensure that in the event the defendant wins the court case, the plaintiff will return the property to the winning party. If the plaintiff loses and doesn’t return the property at all or in its original condition, a claim can be filed in the full bond amount which they must pay. If you would like to learn more about what surety bonds are and how they work, you can read our detailed guide here.
An Example of Replevin Bonds
An example may help you further understand how replevin bonds work. Let’s say you rented an apartment and fell behind on your rent. You moved out, and the landlord kept some of your personal property in return for your past due rent. In a replevin action, you could sue the landlord for the return of property and by filing a replevin bond, you may take possession of the property before the hearing begins. The bond would ensure the property is returned to the defendant in its original condition if you should lose the lawsuit.
How Much Does a Replevin Bond Cost?
Replevin bonds cost a small percentage of the bond amount (about 1-2%), which is based on your financial strength, e.g. personal credit and personal financials. The bond amount is determined by the court and is usually equal to the value of the property in the dispute. These bonds generally require 100% collateral due to the nature of what the bond guarantees. You can use our free bond premium calculator tool to get a price estimate, or you can apply online to get a firm quote.
Surety Bond Claims Can Put You at Risk
You're responsible to pay any bond claims in full which can be as large as the bond amount (this includes legal costs). The indemnity agreement you must sign to get your replevin bond is a legal contract that pledges your corporate and personal assets if you should cause a claim to be filed.
Take a look at our guide to learn more about how bond claims work. Most bond agents won't take the time to explain how claims can put you at risk and how you can avoid them. If your agent doesn’t explain how bond claims can negatively affect you, we strongly suggest that you reconsider working with them.