Subdivision Bond
Also Known as a Site Improvement Bond or Plat Bond
| Bond Amount Required | Bond Term | Annual Premium |
| Varies | 1 Year * | Quote Required |
*Actual required duration depends on the development agreement, bond form, and local government's release requirements.
Subdivision bonds help guarantee that developers complete required improvements associated with a subdivision or development project. Covered work can include grading, streets, water and sewer systems, storm drainage, monuments, sidewalks, and other improvements required by the local government.
How Much Subdivision Bond Coverage Is Required?
There is no single nationwide fixed bond amount for a generic Subdivision Bond. The city, county, or other obligee establishes the required penal sum for the specific development. The amount is commonly based on an engineer-approved estimate of the cost to complete required improvements, and local rules may apply a specified percentage or contingency.
For this product record, the supplied $0 liability amount should therefore be displayed as Variable, Custom, or Amount Determined by Obligee rather than $0.
Subdivision Bond Cost
Because the required bond amount varies by project, a fixed premium cannot be stated from the supplied data. NNA Surety states that subdivision bond premiums are typically about 1%-3% of the bond amount depending on the developer's financial strength. Final pricing is subject to underwriting.
View NNA Surety's Subdivision & Site Improvement Bond information.
How a Subdivision Bond Works
A subdivision bond is a three-party surety agreement that guarantees completion of required development improvements in accordance with the applicable development agreement, approved plans, bond form, and local requirements.
Principal: Developer or subdivider responsible for completing the improvements
Obligee: City, county, municipality, or other governmental entity requiring the bond
Surety: Surety company issuing the bond
Learn about the surety bond claim process for general information about surety claims and reimbursement obligations.
Common Improvements Covered
Depending on the project and jurisdiction, a subdivision/site improvement bond may guarantee completion of grading, roads and streets, curbs and gutters, sidewalks, water and sewer improvements, storm drainage, utilities, monuments, landscaping, or other public infrastructure required for subdivision approval.
What You May Need to Apply
Subdivision bonds are generally underwritten more like contract/performance obligations than fixed-price license bonds. Applicants may need to provide the development agreement, required bond form, engineer's cost estimate, project information, business financial statements, and information about experience completing similar projects.
Important Term Note
Do not state that every Subdivision Bond expires after one year. The supplied one-year term may describe an initial product or premium period, but the underlying obligation usually remains subject to the project documents and the obligee's requirements for completion, acceptance, release, and any applicable maintenance or warranty security.
Get a Subdivision Bond Quote
Review NNA Surety's Subdivision & Site Improvement Bond page for application information. For assistance, call 855-215-2160.