Guilford County Subdivision Bond: A Comprehensive Guide
This guide provides information for insurance agents to help their customers obtain a Guilford County Subdivision bond
At a Glance:
- Average Cost: Between 1% to 12.5% of the bond amount per year based on the applicant’s credit history
- Bond Amount: Determined on a case-by-case basis (more on this later)
- Who Needs it: Developers in Guilford County, North Carolina that are seeking to record subdivision plats before constructing all required public improvements
- Purpose: To ensure the county will receive compensation for financial harm if the developer fails to construct the required public improvements
- Who Requires the Bond: Guilford County, North Carolina
Background
Guilford County Code of Ordinances 5-4 requires developers to obtain approval before recording subdivision plats. As part of the process of obtaining approval, developers must construct public improvements such as roadways, water and sewer systems, erosion controls, and sidewalks. However, developers seeking to obtain plat approval before constructing all required improvements can do so by purchasing a surety bond.
What is the Purpose of the Guilford County Subdivision Bond?
Guilford County requires developers to purchase a surety bond to obtain approval on their subdivision plats before completing the required public improvements. The bond ensures that the county will receive compensation for financial harm if the developer fails to abide by the regulations outlined in Guilford County Code of Ordinances 3-10.1. Specifically, the bond protects the county if the developer does not construct all roadways, water and sewer systems, erosion controls, and sidewalks. In short, the bond is a type of insurance that protects the county if the developer fails to complete all improvements.
How Can an Insurance Agent Obtain a Guilford County Subdivision Bond?
BondExchange makes obtaining a Guilford County Subdivision Bond easy. Simply login to your account and use our keyword search to find the “Guilford” bond in our database. Don’t have a login? Gain access now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone (800) 438-1162, email or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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How is the Bond Amount Determined?
Guilford County Code of Ordinances 3-10.1 dictates that the bond must be in an amount that is sufficient to cover the total estimated cost of constructing the improvements. The developer must estimate this cost and the county must approve it.
Is a Credit Check Required for the Guilford County Subdivision Bond?
Surety companies will run a credit check on the applicant to determine eligibility and pricing for the Guilford County Subdivision bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.
How Much Does the Guilford County Subdivision Bond Cost?
The Guilford County Subdivision bond can cost anywhere between 1% to 12.5% of the bond amount per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on a $10,000 bond requirement.
$10,000 Subdivision Bond Cost
| Credit Score | Bond Cost (1 year) |
|---|---|
| 720+ | $100 |
| 680 – 719 | $150 |
| 650 – 679 | $200 |
| 600 – 649 | $400 |
| 550 – 599 | $750 |
| 500 – 549 | $1,250 |
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase the Bond?
Greensboro requires developers to purchase a surety bond as a prerequisite to obtaining a Temporary Certificate of Occupancy, which the developer needs if they want to record subdivision plats before completing all required public improvements.
How Do Developers Obtain Subdivision Plat Approval In Guilford County?
Developers in Guilford County must navigate several steps to obtain approval on their subdivision plats. Below are the general guidelines, but developers should refer to the County Code of Ordinances for details on the process.
Step 1 – Contact the Planning and Development Department
Developers should contact the county’s Planning and Development Department to obtain a thorough understanding of what is required of them. The department will walk the developer through the application process, answer any questions they may have, and provide them with any forms that must be completed.
Step 2 – Submit a Subdivision Plan
Developers must submit a subdivision plan to the Planning and Development Department. The plan must contain all maps, deeds, sketches and other materials relevant to the development that detail the subdivisions and illustrate that they comply with all relevant standards. Completed plans should be submitted to the following address:
Independence Center
400 W Market Street
PO Box 3427
Greensboro, NC 27402
Step 3 – Purchase a Surety Bond
Developers seeking to record their plats before completing all required improvements must purchase and maintain a surety bond in an amount equal to the estimated cost of constructing the public improvements as approved by the department.
Step 4 – Obtain Approval From the Technical Review Committee
Certain subdivision plans must be approved by the County Technical Review Committee before the plats can be recorded. Developers must submit their plans at least 7 days before the next scheduled committee meeting
How Do Guilford County Developers File Their Subdivision Bonds?
Developers in Guilford County should submit their completed bond forms, including the power of attorney, to the following address:
Independence Center
400 W Market Street
PO Box 3427
Greensboro, NC 27402
The surety bond requires signatures from both the surety company that issues the bond and from the applicant. The surety company should include the following information on the bond form:
- Legal name of entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Bond amount
- Name of the plat
- Date the bond is signed
What Can Guilford County Developers Do to Avoid Claims Against Their Subdivision Bonds?
To avoid claims on their Subdivision bonds, developers in Guilford County must ensure that they adequately construct all public improvements.
What Other Insurance Products Can Agents Offer Developers in Guilford County?
Most reputable developers will purchase liability insurance. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Guilford County Subdivision Bond Customers?
We suggest contacting the county to obtain a list of developers with subdivision plats awaiting approval. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.
