Surety bond in lieu of Residential Recovery Fund assessment
Residential contractors who choose not to pay the assessment into the Residential Recovery Fund. Required when: Claims by residential homeowners for actual damages suffered as a direct result of a contractor's violation of state law. Exemptions: Commercial-only contractors,Contractors who pay the Residential Recovery …
Overview
What it is.
Residential contractors who choose not to pay the assessment into the Residential Recovery Fund. Required when: Claims by residential homeowners for actual damages suffered as a direct result of a contractor's violation of state law. Exemptions: Commercial-only contractors,Contractors who pay the Residential Recovery …
Who usually needs it
Residential contractors who choose not to pay the assessment into the Residential Recovery Fund.
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.
StateAZBond amount$200,000Term lengthContinuousObligeeArizona Registrar of ContractorsRenewalContinuous; must be maintained if the contractor does not participate in the Recovery Fund.Bond classLicense BondCategoryConstructionBondSurety bond in lieu of Residential Recovery Fund assessmentStatutory referenceA.R.S. § 32-1132JurisdictionState
