Appraisal Management Company Bonds Explained
Appraisal management companies are required to get licensed and provide this type of surety bond in many states across the U.S. While the bond language and the provisions of the bond may vary slightly, its purpose is to protect the public, and ensure that appraisal management companies operate in compliance with all applicable state and federal laws.
Like other surety bonds, appraisal management bonds can serve to reimburse someone who has been defrauded by an appraisal management company. This means the bond does not act as insurance to the company, but to its clients and the state. To avoid claims it is important to know what the exact requirements of the bond in your state are.
If you are ready to begin your online application, you can start by clicking on the button at the beginning of the page. If you want to learn more about this type of bond, continue reading the Questions section.
Questions about Appraisal Management Company Bond
Who needs to obtain an appraisal management company bond?
This type of surety bond needs to be provided by all entities who perform appraisal management services in accordance with their state laws. You should check with your state authority to see if you are required to post an appraisal management company bond.
How much does an appraisal management company bond cost?
The cost of your surety bond depends on multiple factors, but there is a quick way to get an estimation.
First of all, it is important to know that each surety bond has a total value which refers to the maximum coverage it can offer to claimants. Every state decides for themselves what the total value of the appraisal management company bond they require will be. For example, New Mexico requires $25,000, while the total value in Washington is $100,000.
To get a bond cost estimation, you can use your credit score. This is the factor with the most weight when bond underwriters look at your application. Applicants with good credit usually pay 1%-4% of the total value, while bad credit applicants may expect premiums between 5% and 10%, rarely more.
Bonding companies sometimes consider other factors as well. You may be asked to submit business and personal financial statements, or even a resume. These can further influence your premium, either positively or negatively.
Check out our What Does a Surety Bond Cost? page for more detailed information on bond premiums.
Can I get an appraisal management company bond with bad credit?
Getting bonded with bad credit can be harder because of the higher risk involved for surety underwriters. Some applicants with more severe credit issues, such as open bankruptcies or applicants with late child support payments, will not be able to get bonded.
Everyone else can apply through our bad credit surety bonds program. While it is inevitable that the bonding company will ask for a higher premium, our surety bond experts can help with personalized advice on strengthening your application.
How do I apply for an appraisal management company bond?
Our online application makes it easy and quick for you to apply and get your surety bond. It takes a few minutes to complete. Afterwards, we’ll get in touch with you to take you through the rest of the process.
We offer the most competitive rates, and we’ll provide you with a free no-obligations quote. Upon payment, processing times are generally no longer than a few business days. For any questions or assistance, you can always contact us at (877) 514-5146.
How are bond claims handled?
It is important to be well acquainted with the bond language and all legislation pertaining to your industry. Violation of the bond agreement can lead to a claim, which can be costly and time-consuming. Remember, if the total value of your bond is $25,000, you may be liable for a sum up to that amount.
This is why we always advise our clients to stay out of claims as much as they can, and to resolve disputes out of court if possible. Of course, it may not always be possible, but if you face a claim and you haven’t committed a violation, you should alert the surety and present your case. If they believe you have a strong case, they can help you defend it in court.