Title Insurance Agency Bond

What is a title insurance agency bond?

A title agency bond (aka Title Insurance Bond, Title Service Bond, Title Insurance Producer Bond) is required for title insurance agencies. This bond is required for title agency companies / agencies before the agencies can be licensed.

Who Needs a Title Insurance Agency Bond

In the following states, title insurance agencies are required by state law to have a surety bond in place before they can obtain their licenses

Arizona
California
District of Columbia
Florida
Idaho
Kansas
Maryland
Missouri
Nevada
New Mexico
Ohio
Pennsylvania
Tennessee
Texas
Virginia
Washington

Why do I need a Title Insurance Agency Bond?

Because the bond provides a financial guarantee that a title insurance agency will be run in accordance with laws and regulations of the industry. The bond is used to protect customers of the title insurance agencies.

How does a title insurance agency bond work?

Each health club bond is a legal contract binding three parties together.

The principal is the title insurance agency
The obligee is the state government that requires the bond, i.e., Dept. of Financial Services of State of Florida
The surety is the insurance company who issues the bond

If a title insurance agency fraudulent activities (i.e., embezzling customers money without their consent), a claim can be filed against the title insurance agency. If a claim is prove to be valid, the surety will pay for the claim up to the bond amount. Then, the surety will require reimbursement from the title insurance agency

How much does a title insurance agency bond cost?

The cost of title insurance agency bond is a fraction of the total bond amount. Therefore, the cost of title insurance agency bond varies, depending on the state and your credit score.

Generally, the title insurance agency premium is about 1% of the total bond amount. Therefore, a $35,000 Florida Title Insurance Agency Bond will cost $350.