North Carolina Manufactured Housing Manufacturer's Bond

North Carolina Manufactured Housing Manufacturer’s Bond

The North Carolina Manufactured Building Division (MBD) requires licensed manufactured housing manufacturers to hold a $100,000 Manufactured Housing Manufacturer’s Bond. The surety bond provided by Jet Insurance Company provides the MBD the financial responsibility needed to allow a manufacturer to operate by guaranteeing the minimum twelve-month warranty all manufacturers must provide.


Jet Insurance Company cuts out the middleman to offer sustainably reduced bond prices with an efficient process. Agents and brokers complicate the bond process and take in a hefty commission adding to the overall cost of your bond. Jet provides bonds with you in mind, 100% of the time.

How Much Is a Manufactured Housing Manufacturer’s Bond? 

Jet will file the original Manufactured Housing Manufacturer’s Bond to the North Carolina Manufactured Building Division on your behalf. A copy of the bond and receipt will be sent to you immediately after purchase.

The Manufactured Building Division requires licensing applications and renewals to be completed online through their electronic system. However, if the case arises where you need to file something by mail, the address is as follows:

Office of State Fire Marshal
Manufactured Building
1202 Mail Service Center
Raleigh, NC 27699-1202

Can I Cancel My Manufactured Housing Manufacturer’s Bond?

Yes, the process for cancellation is very easy with Jet! Simply send in a request in writing, and we can process the cancellation of the bond right away. There is a 60-day cancellation clause on the bond, meaning the cancellation will not take effect until 60 days after Jet sends notice to the Manufactured Building Division. Bond premium returns must take into account this cancellation period where Jet is still providing bond coverage.

How Can I Avoid a Claim on My Manufactured Housing Manufacturer’s Bond?

A manufacturer must provide and uphold a warranty, for a minimum of 12 months starting from the delivery of the home. The warranty ensures that all structural and integral components of the home are constructed and installed free of substantial defects according to North Carolina Manufactured Housing Board General Statute 143-143.16.

Claims are a result of a manufacturer failing to uphold their warranty. In a perfect world all manufactured homes are built with no defects, however, problems occur and warranties are required to ensure manufacturers fix issues they are responsible for. It is important that a warranty be clear on what is covered and who is responsible to service the warranty. Issues often result from manufacturers, dealers, and setup contractors disagreeing with each other on who is responsible for each part of the warranty.

If you are responsible for servicing the warranty, then you must do so within 45 days of the request, unless there is an imminent safety issue, then only five business days are allowed to remedy the problem.

Any modification or alteration by the dealer covered under warranty can be handled by the manufacturer even if they are not responsible for the damages. After a manufacturer fixes the issue under warranty, they can go to the dealer for reimbursement of the repair cost, and attorney fees if there is litigation.

What Happens If I Get a Claim on My Manufactured Housing Manufacturer Bond? 

Complaints against your license and bond can come directly from the homebuyer or from the Manufactured Building Division. Homebuyers can lodge a complaint directly to the MBD first, but the MBD will not take action because they expect the two parties, homebuyer and set-up contractor, to resolve the dispute between each other. The MBD may request service records for inspection and will require that to be sent in within 10 days per General Statute 143-143.22.

If both parties cannot come to an agreement, the MBD may send out an inspector to the manufactured home or arrange a conference between all parties to discuss the issue. Ultimately if the complaint is not resolved they will simply recommend legal action, at which point the homebuyer can go after the bond for compensation.

Contact Jet immediately upon receipt of a claim and our claims adjuster will thoroughly review the details and defend you against unjustified claims.

If a claim by a homebuyer is justified then Jet is obligated per General Statute 143-143.12 to pay out for the amount of the loss sustained by the homebuyer up to the full bond limit. Unlike a liability policy that covers any accidental damages, the surety bond covers a home buyer from a manufacturer refusing to provide and uphold a warranty for substantial defects of the home. You are ultimately responsible for your home manufacturing or warranty service and must reimburse Jet for a claim payment.

Think of the bond as a letter of credit certifying that you will follow the rules and regulations set in place for manufactured home manufacturers, namely upholding a manufacturer warranty. It is not Jet’s aim to pay bond claims, but to curb claims activity through proper education and representation of manufacturers.

It is in your best interest to handle a dispute before it results in a bond claim. If a bond claim is paid out without any reimbursement back to Jet, then the bond will be cancelled. The Manufactured Housing Division will suspend the license per General Statute 143-143.13 if the surety bond is cancelled.

Who Needs A Manufactured Housing Manufacturer’s Bond?

A manufactured home manufacturer is defined in North Carolina General Statute 143-143.9 as a person who assembles or manufactures homes for sale in North Carolina to dealers. A Manufactured Housing Manufacturer’s Bond is required for any person or business looking to be licensed as a manufactured home manufacturer.

How Does the Application Process Work With Jet?

The Manufactured Housing Manufacturer’s Bond requires only basic business information to get the process started online. Financials in the form of a bank statement, income statement, balance sheet, or any other document that provides a snapshot of the business or personal financial situation may be required after our initial application review.

At Jet, we understand your time is valuable, so we tightened down the underwriting process to ensure we ask only for the necessary information. Other surety companies use generic forms and require information not even pertinent to this bond.


Why Is a Manufactured Housing Manufacturer’s Bond Required?

The Manufactured Housing Manufacturer’s Bond is a guarantee to homebuyers that any financial losses from a manufacturer's failure to provide and uphold a warranty will be covered. Manufacturers must provide a 12-month warranty for home buyers that covers substantial defects of the important structural and livable components of the manufactured home. The bond is required in order to acquire and maintain a license as a manufactured home manufacturer.

How Do I Determine the Bond Limit for the Manufactured Housing Manufacturer’s Bond?

The Manufactured Housing Division requires a licensed manufacturer to carry a bond limit calculated at $2,000 for each manufactured home built for the previous year, or for new manufacturers an estimated number of homes in the upcoming year, with a maximum bond limit of $100,000.

A manufacturer building at least 50 manufactured homes will be required to hold a manufactured home manufacturer bond limit at $100,000. While there can be variation in the bond limit across licensed manufacturers, $100,000 is the most common bond limit. Holding a bond for $100,000 eliminates any forecasting and adjustment of the bond requirement year to year.

How Do I Renew the Manufactured Housing Manufacturer’s Bond?

Put your calendars away, Jet will contact you well in advance of the bond renewal date! In order to provide a quote for renewal we will need updated financial information. Our underwriting team works diligently to provide the lowest rate possible for renewal.

Once the quote is ready only a payment is required for the annual or low monthly payment option. Whether you prefer mail, email, fax, or online payment, we make the process quick and easy so you can get back to what’s important, your business. We will inform the North Carolina Manufactured Housing Division of the renewal and send a copy for your records immediately after purchase.

The bond has a common expiration date of June 30th, meaning the bond will expire on June 30th regardless of the bond effective date.

North Carolina Manufactured Housing Manufacturer's Bond Form