Manufactured Housing Set-Up Contractors are required by the North Carolina Manufactured Building Division (MBD) to carry a $10,000 Set-Up Contractor License Bond to maintain a license for setting up manufactured homes in North Carolina. The bond is a financial guarantee from Jet Insurance Company to the MBD that contractors set-up manufactured homes to code according to the State of North Carolina Regulations for Manufactured Homes and without any substantial defects.
Jet cuts out the middleman leveraging efficiencies from a streamlined process to offer you the lowest bond price! Other insurance companies pay excessive commissions to agents and brokers who complicate communication and risk errors with your bond. At Jet, we work directly with you to offer personal service.
Jet offers the lowest rates for the Manufactured Housing Set-up Contractor Bond at $100 annually or $11 monthly. The bond rate may vary based on personal credit and years experience of the business owner.
We have a monthly payment offer that lets you get the bond only for the time you need it. Jet’s monthly option is a convenient automatic process, so don’t worry about missing a payment. You won’t find any other insurance company offering monthly payments like this!
Jet will file the original bond to the Manufactured Building Division for you, so just leave this set-up to us! A copy of the bond and receipt will be sent after purchase for your records.
The Manufactured Building Division asks that all paperwork for license applications and renewals are submitted through their electronic system for processing. If you must send something in by mail, the address is as follows:
Office of State Fire Marshal
1202 Mail Service Center
Raleigh, NC 27699-1202
Jet makes cancelling your bond easy! Just let us know when you need the bond cancelled and will process cancellation with the Manufactured Building Division. The bond has a 60-day cancellation provision so the bond will not cancel until 60 days after Jet sends the notice. Bond premium returns take into account the 60-day period where the bond is still providing coverage.
Claims are a result of a manufactured home set-up that is not compliant with the code, the regulations for the installation of manufactured homes, or set-up resulting in substantial defects per General Statute 143-143.15. A set-up contractor must provide and uphold a warranty that covers substantial defects and code compliance.
When an issue arises around a warranty claim, it can be difficult to determine whether the set-up contractor, dealer, or manufacturer is responsible for servicing the claim. Make sure that the warranty is clear about which party is responsible and to what extent.
Substantial defects under the warranty must be serviced within 45 days per General Statute 143-143.18. If you are responsible for servicing the issue make sure it is completed within a 45 day window, otherwise the home buyer can go after the bond to seek reimbursement for repairs from a third party contractor. Note that there are imminent safety hazards that reduce the warranty servicing window to only five days. These imminent safety hazards include:
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 count on the two parties, homebuyer and set-up contractor, to resolve the dispute with each other.
The MBD may request service records for inspection, which is a good indicator that a formal complaint was lodged. They require that the service records be sent 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 recommend legal action, at which point the homebuyer can litigate in court or go after the bond for compensation.
Contact Jet right away once you have notice of a complaint or claim against your license. Our claims handler will thoroughly review the details of the claim, including the warranty and contract, so that we can defend you against unjustified claims.
If the claim from a home buyer is justified, then Jet is obligated to payout on the bond in accordance with General Statute 143-143.12. You must reimburse Jet for payment on a claim, so it is in your best interest to handle a dispute before it results in a bond claim.
Think of the bond as a letter of credit to the Manufactured Housing Division, vouching that you will uphold the professional standards of the manufactured housing industry. In order for that guarantee to remain in place, and for the bond to remain intact, you must repay the surety for claims against the bond. It is not Jet’s aim to pay bond claims, but to curb claims activity through proper education and representation of manufactured housing dealers.
The surety bond will be cancelled if a pay out occurs. Without a surety bond in place the Manufactured Housing Division will suspend the license according to General Statute 143-143.13.
The Set-up Contractor License Bond is required for contractors licensed with the North Carolina Manufactured Housing Board as a set-up contractor for manufactured homes. Set-up contractors are simply defined under the North Carolina General Statute 143-143.9 as a business that performs setups for compensation. If you're doing setups for free, then that means you don’t need a license and you can save on overhead costs!
With Jet the process is entirely online, and we only ask for a few pieces of information that you would know off the top of your head. You can have the quote and bond in your hands in just a minute by clicking on the application button below.
Put your calendars away, Jet will contact you well in advance of the bond renewal date! If you’re paying on an annual basis you need only submit payment before the expiration date. The renewal can be processed instantly online, or via mail, fax, or phone. The bond has a common expiration date of June 30th so the bond will expire on June 30th regardless of when the bond started.
If you are on monthly payments they will simply continue as long as the payment information is up to date. There is a 60-day grace period where the bond remains active with the Manufactured Housing Division should a monthly installment be missed for any reason.
If a manufactured housing contractor is installing a modular home, then a $5,000 bond will be required for each modular home installed. The $5,000 Modular Building Set-up Contractor Bond is not required if you, or anyone involved in pulling the permit for the job, has a general contractor license.