A Complete Guide on Utility Deposit Bond
Utility bond is a not like other surety bonds that protects the consumer. Rather, utility bond is the only bond that protects the utility companies. In U.S you often hear cases where the consumers do not pay their utility bill and the utility providing companies has to bear the harm. To get rid of these cases the federal government proposed a rule of utility deposit bonds.
When a person applies for utility deposit bond, he guarantees that he/she will pay the utility bill on time. In case the person is unable to make the utility bill payment the surety of the bond makes the payments. The consumer however has to pay the amount later to the surety.
You will find most of the utility companies requesting for a utility deposit bond before they start the utility connection.
The bond requirement is generated from the utility providing companies and it totally depends on the company. The utility company decides the guidelines and requirements of the utility bond. Generally the utility companies ask for a utility bond from companies with bad history in bill payments.
The cost of utility deposit bond depends on the state. While deciding the rate of bond there are several factors like financial credit of the person that decides the bond cost. The person with bad credit usually has to pay high bond amount.
There are certain things that are required when you go to apply for a utility bond:
A bond form with exact wordings of the bond is required. The bond form should be specific for the utility you are going to take service of.
The utility should also specify the bond amount.
You need to mention the name of the obligee too.
The surety providing company may also ask you for the current paid bill. This is required to verify the last payment.
It is very simple and easy to get a utility deposit bond. There are several bond providing companies offering bonds instantly online. All you have to do is just finding out the best bond provider online. Choose the state for which you need your utility deposit bond and fill the required details. Make payment online and take the print out of your bond.
Most people are often confused between the surety bond and the insurance. They think both are the same things but, it is not. A bond is always required to get any license and doesn’t offer any insurance to the bond bearer.
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