Alabama Manufactured Housing Bond
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How much does a manufactured home surety bond cost in Alabama?
Manufacturers, retailers, and installers of manufactured homes in Alabama must post surety bonds to legally work within the state. The required bond amount is based on the applicant’s license type. Installers must post a $20,000 bond, and manufacturers must post a $25,000 bond per facility, with the minimum bond amount set at $100,000. Retailers with no more than three facilities must post a $25,000 bond, and retailers with more than three facilities must post a $50,000 bond.
These bonds are subject to underwriting, so your bond premium rate depends on a review of your personal credit report. Bad credit? No problem! Our experts have a history of helping 99% of applicants get bonded quickly and easily.
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Why do I need this bond?
By posting an Alabama manufactured housing bond, the principal (manufactured home manufacturer, retailer, or installer) pledges to perform all duties in accordance with the law, rules, and regulations governing manufactured homes (mobile homes) and manufactured buildings (modulars) in Alabama. The bond is put in place to protect consumers and to enable the principal to obtain or renew an annual license/certification from the Alabama Manufactured Housing Commission (AMHC).
If the principal fails to complete work and conduct business according to law and the terms of the surety contract, the bond protects consumers from damages sustained up to the full amount the bond. The principal must reimburse the surety for all damages paid out.
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What’s the fine print?
Manufactured housing bonds in Alabama remain in full force and effect until canceled or violated. The surety can cancel the bond by providing written notice of cancellation via certified mail to the Alabama Manufactured Housing Commission in Montgomery, Alabama, at least 60 days prior to the effective cancellation/termination date.
How to become a manufactured home installer in Alabama
To become a certified manufactured (mobile home) installer in Alabama, applicants must:
- complete an application form and submit it to the Alabama Manufactured Housing Commission
- pay the required certification fee
- submit a valid bond in the amount of $20,000
- submit proof of general liability insurance coverage in the amount of $100,000
- successfully complete an installer’s course conducted by the commission
- pass a written or oral test
To become a licensed manufactured home retailer/dealer in Alabama, applicants must:
- complete an application form and submit it to the AMHC
- pay the required certification fee
- submit a surety bond in the proper amount
- submit proof of liability insurance coverage in the amount of $500,000
- have a salesperson who who is trained and licensed by the commission
- successfully complete a course of instruction approved by the commission
To become a licensed manufactured home manufacturer in Alabama, applicants must:
- complete an application form and submit it to the commission
- pay the required license fee
- submit a $25,000 surety bond per licensed facility ($100,000 minimum surety bond)
- provide proof of general liability insurance in the amount of $1,000,000
More licensing information can be accessed from the "Additional Resources" section of this page.
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