Texas Utility Bond
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How much does a utility deposit bond cost in Texas?
Some utility service providers in Texas require consumers to post surety bonds in lieu of cash deposits before services can begin. If you’ve been told by a utility company in Texas that you need a surety bond, our surety professionals can help.
Required bond amounts vary. Each utility company has its own set of rules and way of calculating the amount of bond coverage you’ll need to purchase. Applicants should verify their required bond amount and utility account number with the service provider prior to bonding.
The best way to find out exactly how much you’ll pay for your bond is to request a free bond quote. Don’t let bad credit stop you from purchasing the surety bond you need quickly and easily. Our experts are here to help.
Is the utility company that supplies your utility services not listed above? No problem! We can still get you bonded. Submit a bond request or call 1 (800) 308-4358 to get started.
Why do I need this bond?
By posting a Texas utility bond, the principal (utility customer) pledges to pay all amounts that become due to the utility company on time and in full. This includes all bills for utility services.
If the principal violates any of the terms of the bond agreement and utility service contract and the utility company suffers financial loss, the surety will cover all damages up to the full bond amount. The principal must reimburse the surety for all damages paid out.
What’s the fine print?
Fort Worth Water Department bonds, Arlington utility bonds, and Houston utility bonds remain continuous until canceled. The surety can cancel the bond by providing written notice of cancellation to both the principal and the city. Cancellation becomes effective 60 days after the notice is received.
City of Bedford utility bonds also remain continuous until canceled, but the surety must give the city at least 30 days written notice before canceling the bond. The city can also cancel the bond by giving the surety the same amount of notice.
Because the terms of utility bonds vary from utility company to utility company, applicants should be sure they fully understand their bond agreements.
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