Louisiana Manufactured Housing Bonds

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What is the Louisiana Manufactured Housing Bond Amount?

These are the manufactured housing license classifications:

• Manufacturer
• Retailer
• Developer
• Sales person
• Installer

 

Retailers and Developers Bond Requirement

All licensed retailers and developers must have the following license surety bond active as long as they remain active in business.

 

Retailer and Developer Net-Worth Surety Bond

There is an additional bonding requirement for retailers and developers that is contingent on the net-worth of the owner or owners.

Each retailer and developer applicant must submit a financial audit and balance sheet showing a net-worth of $250,000.

If you can't meet this level, you're required to purchase a surety bond in the amount of $250,000.

This bond must remain active until the minimum net-worth is achieved.

 

Installer and Transporter Bond Requirement

All licensed manufactured housing installers and developers must have the following license surety bond active as long as they remain active in business.

 

Why is a Louisiana Manufactured Housing Bond Required?

The surety bond requirement is part of a list of other license requirements. These requirements are put in place to ensure any individual or business interested in getting licensed can serve the public.

However, every year there will be a small number licensed manufactured housing professionals who will financially harm their customers on purpose to make more money.

Examples of these purposeful fraudulent actions can include:

• Lying about the home specs or model numbers
• Cutting corners when installing
• Falsifying information when selling a lot with manufactured homes on it
• Using cheaper materials than were outlined in purchase agreements

If a licensed manufactured housing individual or business is found guilty of these acts or any similar act that financially harms a customer, the customer can make a claim against the surety bond.

The claim is to receive financial compensation for damages. A single claim amount and/or the total of all claim amounts can only go up to the surety bond amount.

 

How Much Does the Louisiana Manufactured Housing Bond Cost?

Every surety bond for all manufactured housing licenses are credit driven. This means a custom price will have to be determined by a surety.

A surety is an insurance company that underwrites surety bonds for manufactured housing licenses.

The factors that will determine the price are the:

• Personal credit of the owner and/or owners
• Manufactured housing industry and experience
• Any prior bond claims if they exist

Based on these factors, the surety will quote a rate. This rate multiplied by the bond amount is the price you pay to purchase your bond.

This is how you can save hundreds of dollars, maybe thousands depending on your bond amount.

 

How to Save Hundreds of Dollars When You Purchase Your Bond

We are Surety Bonds Direct, a specialized surety agency. We work with the highest A rated sureties to find our customers the lowest possible price for the bond they need.

Let's look at example pricing for the $50,000 bond amount.

All prices are one payment for the bond term, 12 months in the case of the manufactured housing bonds.

Pay attention to how drastically the price changes as the rates change. The rates in the table are from really good to about average.

You can get your exact pricing today so you can plan accordingly.

Use our pricing quote form to start the process or you can call a bond specialist at 1-800-608-9950.

 

How Long Does the Louisiana Manufactured Housing Bond Last?

As we've mentioned the bond term for all manufactured housing bonds is 12 months.

When you purchase your bond, you'll choose an active date (or effective date) for your bond. This is the date that will determine the renewal date in 12 months.

Renewing your bond is easy.

You're assigned your own bond specialist. They will contact you 30 to 45 days in advance to make sure the renewal premium is paid on time and your bond remains active.

Once you pay the renewal premium, you don't have to do anything else. Your bond is active and you can continue with business.

 

Manufactured Housing Bonds And Getting Your Louisiana Business License/Registration

The licensing process itself is pretty easy to get through.

At a high level, the steps are:

• Decide on your license classifications or classification
• Pay the application fee based on your license
• Purchase your surety bond
• Purchase the minimum level of liability insurance
• Outline the business ownership
• Have a criminal background check
• Attend the certification class given by the Louisiana Manufactured Housing Commission
• Complete your application