Surety Bond Encyclopedia

Installer ($20,000) Bond - Alabama Manufactured Housing Commission in Alabama

Brief Summary

Alabama will not certify a manufactured home installer until a $20,000 bond, $100,000 of general liability insurance and a passed Commission training course are all in place. The bond is the fastest of the three to finish. You pay a yearly premium instead of tying up $20,000, and the completed AMHC License/Permit Bond goes straight into your certification packet.

Every installer certified by the Alabama Manufactured Housing Commission must hold a $20,000 surety bond under Ala. Admin. Code 535-X-15-.03, along with $100,000 of general liability insurance. The amount is flat, with no tiers. The bond is written on the Commission's License/Permit Bond form, the certification fee is $200, and certification renews every year with no grace period.

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How to Apply for a Installer ($20,000) Bond:

Register for and complete the Commission installer course, then pass the written or oral test.
Place $100,000 of general liability insurance and keep the carrier name and policy number handy.
Apply for the $20,000 bond using your name and business details exactly as they will appear on the AMHC certification application.
Have the surety complete the AMHC License/Permit Bond form with the $20,000 penal sum and a bond number.
Submit the Application for Installer Certification with the bond and insurance details, a valid driver's license, proof of U.S. citizenship and the $200 certification fee.
Renew every year before the certification lapses, because no grace period is allowed.

Detailed Information About the Alabama Installer ($20,000) Bond:

A flat $20,000, with no tiers

The manufacturer and retailer bonds scale with the number of facilities. The installer bond does not. Rule 535-X-15-.03 sets it at $20,000 for every certified installer, with general liability insurance of $100,000. The rule was adopted under Code of Alabama 1975, Section 24-6-4, and it allows the Commission to raise or lower bond requirements after a periodic review of valid claims, so check the current figure before each renewal.

Training does not replace the bond

Rule 535-X-12-.03 requires each applicant to complete the Commission's installer course and pass a written or oral test before certification, then finish a refresher course every two years. The Commission's 2025 sunset review describes the initial course as 8 hours of classroom training followed by 4 hours of hands-on training. The course is its own requirement. Passing it does not waive the bond or the insurance.

What the bond covers

The Commission uses one bond form for manufacturers, retailers and installers. It is written for consumer protection and conditioned on the installer and all of its agents and employees faithfully and honestly performing their obligations under Alabama law and Commission rules. Under rule 535-X-15-.04 the Commission itself validates bond claims and decides who is responsible. The surety's total liability never exceeds the bond amount and does not stack from year to year. The surety must give the Commission 60 days notice by certified mail before cancelling, and claims can still be made for up to 12 months after the bond ends.

Fees, decals and renewal

The installer certification fee is $200 and the Commission training fee is $130 under Ala. Admin. Code 535-X-19. Certification renews annually and the sunset review states that no grace period is allowed, so a lapsed bond or a late renewal can stop your work. Each home you set also needs an installation decal bought in your name. Decals cannot be transferred and must be used by the certified installer who purchased them.

Eligibility and Requirements for a Alabama Installer ($20,000) Bond:

Bond amount of exactly $20,000 under Ala. Admin. Code 535-X-15-.03.
Alabama Manufactured Housing Commission named as obligee on the Commission's License/Permit Bond form (Rev. 12/14).
General liability insurance of $100,000 held alongside the bond.
Completion of the Commission installer course and test, plus a refresher course every two years.
Credit review of the applicant by the surety, which sets the premium.

Alabama Installer ($20,000) Bond FAQs:

Does the installer bond amount go up if I run more crews or work in more counties?

No. Rule 535-X-15-.03 sets one flat $20,000 amount for installers. Tiered amounts apply only to manufacturers, based on licensed facilities, and to retailers, based on sales locations.

I finished the Commission training. Do I still need the bond?

Yes. The installer course and test, the $20,000 bond and the $100,000 liability policy are separate requirements, and certification is issued only when all of them are met.

What does the bond cost?

You pay a premium, not the $20,000. The surety sets it after reviewing your credit and business history, and you see the quote before you buy.

Who decides whether a claim against my bond is valid?

The Alabama Manufactured Housing Commission. Rule 535-X-15-.04 gives it the authority to validate bond claims and determine the responsible parties. The bond protects consumers, not the installer, so if the surety pays a valid claim it will look to you for reimbursement.

How long can claims be made after I cancel the bond?

The Commission's bond form allows claims for up to 12 months after the bond is terminated or cancelled. The surety must also give the Commission 60 days notice by certified mail before cancelling.