Owners of private storage lots in the City of Houston, Texas must be approved for an operator permit by the local Police Department. A Private Storage Lot Bond is needed to fulfill this licensing requirement.
Jet Insurance Company provides the Private Storage Lot Bond as a financial assurance to the Houston Police Department that the private storage lot operator (such as an auto wrecker with a private lot) will abide by the regulations of their permit. If the operator commits violations such as negligence or fraud and fails to make restitution, the surety bond may be used to cover the losses incurred by the Department or a person of the public.
The custom bond limit for the Private Storage Lot Bond is based on the maximum capacity of motor vehicles that can be stored at the facility at one time. Please note that this does not mean how many vehicles are on the lot but how many the lot can hold.
Upon the permit application, the Houston Police Department will be in charge of approving your bond limit so be sure to apply for the appropriate amount.
At Jet, Private Storage Lot Bonds that have a limit up to $5,000 start at an annual cost of $100 or just $10 a month. Although actual rates are based on the applicant’s credit score, most applicants will qualify for these low prices. If you are interested in additional payment plans, take a look at the chart below for our monthly, annual, and multi-year bond term rates.
Operator permits expire every year with the Houston Police Department and an active bond must be on file to be approved for renewed licensing. With this in mind, our monthly bond plan is a great option if you are looking to keep your storage lot in operation with the Department for the foreseeable future. Your bond will simply stay active as long as payments are made.
The Jet team has worked hard to create a quick and hassle-free application process that can be completed in just a few minutes. Our online system will ask for some general information from you such as your contact details, required bond amount, and social security number. This will be used for a soft credit check, but no need to worry, it won’t affect your current score. Simply choose the best bond term for you, fulfill payment, and you’ll be all set. A copy of your bond form and receipt will be sent to you once we receive payment.
Once your purchase has been completed, the Jet team will send you a copy of the bond form to your email. The bond will just need your signature and then it will be up to you to send your Private Storage Lot Bond and any other required paperwork to the Houston Police Department at the following mailing address:
Lieutenant in Command
Houston Police Department
Auto Dealers Detail
P.O. Box 1562
Houston, TX 77251
If you would like to file your bond with the Department in person, the following physical address applies:
Houston Police Department
Auto Dealers Detail, Basement Level
901 Bagby Street
Houston, TX 77002
Applications for the operator permit can be found on the Department’s Permitting Center webpage.
If you are enrolled in our monthly payment plan, you won’t have to worry about renewing your Private Storage Lot Permit Bond. The surety bond will remain in effect as long as monthly payments are fulfilled or until cancellation is sought.
However, if you purchased an annual or multi-year bond term, the Jet team will send you a renewal invoice by mail and email before your plan’s expiration date. All we need from you is the standard payment due, and once received, your bond will remain active with the Houston Police Department for another term.
If you need to cancel your Texas surety bond for whatever reason, simply send us a cancellation request to our email address at [email protected]. Once received, Jet will send a termination notice to the Houston Police Department regarding your bond; the liability will be released within 30 days of notification.
Monthly enrollees will be required to make one last payment for the 30-day grace period as your bond is technically still active during this time. All future payments will cease once this step has been taken care of. If you purchased a multi-year bond term and are cancelling early, a Jet team member will review your account for any unused premium. If any is available, you will receive reimbursement once your bond has reached its official cancellation date.
A licensed operator, like an auto wrecker, who runs a private storage lot in the City of Houston, Texas is expected to comply with Chapter 8, Division 3 of the Houston, Texas Code of Ordinances. Operators who have been enrolled in a Police Private Storage Lot Agreement (lot operator is permitted to accept vehicles without the consent of the owner on the authorization of a city police officer) must also follow and fulfill all contractual obligations of their agreement. A violation of these regulations or breach of contract may result in a suspended or revoked operator permit, mandatory hearing, large fines, civil penalties, civil action, and/or a bond claim.
Claims on the Private Storage Lot Bond are rare due to the Houston Police Department’s mandatory hearing process. Violations such as negligence or fraud typically can be resolved or dealt with through civil penalties during these proceedings. However, any person of the public who feels they have been financially damaged by the operator can choose to take civil action against them. This may occur if the vehicle owner’s property has been damaged while being stored in the private lot and the operator has refused to reimburse them for such losses. In this case, a Texas court would need to rule in favor of the claimant. If this occurs, the bond may act as restitution for losses incurred by the damaged party.
If you receive a Houston Police Department or Texas court-ordered bond claim notice, contact Jet as soon as possible. We will ask that you provide us with all available information and documentation regarding the claim. These details will be utilized for our own investigation of the alleged transgression.
Per the Private Storage Lot Bond form, Jet Insurance Company is legally obligated to complete payment of justified claims and payouts will never exceed the bond limit. Keep in mind that you, the private storage lot operator, are responsible for your actions and the actions of your employees. Therefore, you will be required to reimburse Jet for the claim payout made on behalf of your business’s violation(s). Failure to do so may result in future difficulties obtaining surety bonds within the State of Texas. This is especially important if you are looking to keep your private storage lot operating legally in the City of Houston as a bond is required for licensure purposes.