The Illinois Manufactured Housing Installer Bond protects homeowners and guarantees that installation contractors will cover the cost of repairing any damage caused during manufactured home installation, up to and including full replacement of the home. The bond amount can be as low as $10,000 when combined with insur…
Overview
What it is.
The Illinois Manufactured Housing Installer Bond protects homeowners and guarantees that installation contractors will cover the cost of repairing any damage caused during manufactured home installation, up to and including full replacement of the home. The bond amount can be as low as $10,000 when combined with insur…
Who usually needs it
Licensed manufactured housing installers operating in Illinois who install manufactured homes under HUD standards. This bond is required to obtain and maintain a HUD manufactured home installer license.
Pricing & timing
What to expect.
Generic pricing
License bonds are required by state and local governments to ensure compliance with industry regulations. Typical Pricing:. • Small bonds (under $25,000): Typically $100–$250 per year (flat fee). • Larger license bonds: Commonly around 1–5% of the bond amount annually. • Credit impact: Good credit: starting around 1–2% · Average credit: typically 2–4% · Credit challenges: often 4–5% or higher. Same-day approval is typical for many common license bonds. Some license bonds may price higher de…
Typical timeframe
Issuance timeframe varies by bond type and underwriting
Application
What to do next.
Tell us the bond name, state, and amount on your form.
Share business and applicant info so the team can quote it.
Sign and pay; we issue the bond and send you the documents.
Keep your effective date and renewal date on file with us.
Start the application.
You are on the exact bond page. The next step is to start the quick application.
StateILBond amount$10,000ObligeeU.S. Department of Housing and Urban Development (HUD)Bond classLicense BondCategoryConstructionBondIllinois Manufactured Housing Installer BondPlain descriptionThe Illinois Manufactured Housing Installer Bond protects homeowners and guarantees that installation contractors will cover the cost of repairing any damage caused during manufactured home installation, up to and inclu…Who needs this bondLicensed manufactured housing installers operating in Illinois who install manufactured homes under HUD standards. This bond is required to obtain and maintain a HUD manufactured home installer license.
FAQ
Common questions.
What are the bond coverage options for Illinois manufactured housing installers?
Illinois manufactured housing installers have five HUD-approved coverage options under 24 CFR 3286.205: (1) Surety bond only - $100,000 sufficient to replace the home, (2) Irrevocable letter of credit only - amount sufficient to replace the home, (3) Surety bond + insurance - $10,000 bond plus general liability insurance listing HUD as additional insured, (4) Letter of credit + insurance - $10,000 LOC plus $250,000 general liability policy, or (5) Insurance only - $250,000 general liability covering warranty issues for one year post-installation with no deductible. The bond or coverage must be maintained continuously for the license to remain valid.
Who can file a claim against an Illinois manufactured housing installer bond?
Homeowners who suffer damage to their manufactured home or its supports caused by installer errors during installation can file claims against the bond. HUD may also initiate claims for violations of installation standards. Valid claims include foundation problems, structural damage, utility connection errors, improper anchoring, or any installation defects requiring repair or replacement. The surety investigates each claim and pays valid claims up to the bond amount, then seeks reimbursement from the installer.
Is the Illinois manufactured housing installer bond required by the state or federal government?
This bond is required by federal HUD regulations under 24 CFR 3286.205, not by Illinois state law. Illinois currently has no statewide requirements for the entire installation of manufactured homes at the state level. However, installers who operate under HUD's installation program and seek a HUD installer license must comply with the federal bond requirement. HUD may request proof of the bond at any time, and installers must notify HUD of any changes or cancellations to their coverage.
