Alabama Residential Roofer Bond

What Is the Purpose of the Residential Roofer Bond?

The Residential Roofer Bond must be filed with the Alabama Home Builders Licensure Board to guarantee that residential roofers will perform in a professional manner and fulfill projects as agreed upon. The bond shall be in an amount of $10,000 to indemnify anyone that suffers damages due to the residential roofer’s negligence, default, or inadequate work. 

Who Needs the Residential Roofer Bond?

The Residential Roofer Bond is to be held by residential roofers that are required to be licensed. A residential roofing project that is higher than $2,500 will require a roofers license. A residential roofer is one who installs or repairs the external upper covering of a residential building or a structure that waterproofs, weatherproofs, or otherwise seals the residence or structure as indicated in ALA Code 34-14A-2. 

What Do Surety Underwriters Need to Know About the Residential Roofer Bond?

The risk of a Residential Roofer Bond is dependent on the roofer’s ability to perform according to the Code of Alabama, Title 34, Chapter 14A, the Alabama Administrative Code Chapter 465-X and any project specifications. A claim on the bond can result from the principal’s failure to complete a project (through default or other reasons), substandard performance or negligent behavior that causes damages to the consumer. The Residential Roofer Bond is underwritten through an evaluation of the principal’s personal credit due to having a relatively low limit of $10,000. 

Another thing that should be noted about this bond is that it expires December 31st of the year it was issued. A continuation certificate can be issued for the bond to remain active.

What Do Surety Claims Handlers Need to Know About the Residential Roofer Bond?

Claims against the Residential Roofer Bond are filed from the consumer when the principal has failed to meet or complete the roofing project as promised and causes financial damage to the consumer. If a complaint against the principal comes up, the surety company is obligated to pay out the claim up to the full limit under AAC 465-X-5-.03. The principal has 90 days to restore the bond to its full limit, the principal will be subject to a hearing that shall be held within three months from the complaint filing. If the violation is serious, the Board may forward information to appropriate officials and may result in a warrant of arrest.

Are There Any Alternatives to the Residential Roofer Bond?

No, a roofer must file a Residential Roofer Bond when applying for a roofing license. Jobs that have a total cost of over $2,500 can only be performed by a licensed roofer. 

How Much Does the Residential Roofer Bond Cost?

The Residential Roofer Bond can be quoted as low as $100. Underwriting on the bond is dependent on the principal’s credit standing. 

How Is the Residential Roofer Bond Filed?

The Residential Roofer Bond must be completed by both the surety company and the principal before submitting to the Alabama Home Builders Licensure Board. The surety company must sign and seal the bond; the principal must sign the bond. 

The original bond form must be mailed to:

Alabama Home Builders Licensure Board
P.O. Box 303605
Montgomery, AL 36104

Can the Residential Roofer Bond Be Cancelled?

Yes, the Residential Roofer Bond can be cancelled by the surety company giving 15 days advance notice to the Board. Once the cancellation is final, the surety company shall provide a prorated refund in accordance with the company’s cancellation policy. 

Are Residential Roofer Bonds Renewable?

Residential Roofer Bonds expire on December 31st of the year they were issued, but can be kept active through a continuation certificate. The bond can be kept in effect for years on end as long as the surety company provides a continuation certificate to the Board.