Buncombe County Stormwater Management Bond: A Comprehensive Guide
April 29, 2022
This guide provides information for insurance agents to help their customers obtain a Buncombe County Stormwater Management bond
At a Glance:
- Average Cost: Between 0.75% to 12.5% of the bond amount per year based on the applicant’s credit history
- Bond Amount: Determined on a case by case basis (more on this later)
- Who Needs it: All owners or developers applying for a stormwater permit in Buncombe County, North Carolina
- Purpose: To ensure the county will receive compensation for financial harm if the stormwater system is installed incorrectly
- Who Regulates Stormwater Systems in Buncombe County: The Buncombe County Department of Planning and Development
Buncombe County Code of Ordinances 26-322 requires that property owners and developers obtain a stormwater permit for all development or redevelopment of one acre or more on any residential or commercial lot. The Buncombe County Board of Commissioners enacted the permit requirement to ensure that stormwater runoff associated with the development of new land is properly managed. To provide financial security for the enforcement of the permitting law, property owners and developers must purchase and maintain a surety bond to be eligible for a permit.
What is the Purpose of the Buncombe County Stormwater Management Bond?
Buncombe County requires property owners and developers to purchase a surety bond as part of the application process to obtain a stormwater permit. The bond ensures that the county will receive compensation for financial harm if the permittee fails to abide by the regulations outlined in Buncombe County Code of Ordinances 26-382. Specifically, the bond protects the county if the stormwater system is not correctly installed and does not function properly. In short, the bond is a type of insurance that protects the public if the stormwater system does not work as intended.
How Can an Insurance Agent Obtain a Buncombe County Stormwater Management Surety Bond?
BondExchange makes obtaining a Buncombe County Stormwater Management bond easy. Simply log in to your account and use our keyword search to find the “stormwater” bond in our database. Don’t have a login? Enroll now and let us help you satisfy your customers’ needs. Our friendly underwriting staff is available by phone at (800) 438-1162, email, or chat from 7:30 AM to 7:00 PM EST to assist you.
At BondExchange, our 40 years of experience, leading technology, and access to markets ensures that we have the knowledge and resources to provide your clients with fast and friendly service whether obtaining quotes or issuing bonds.
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How is the Bond Amount Determined?
Buncombe County Code of Ordinances 26-382 dictates that the bond amount must be equal to the total estimated construction costs of the stormwater system, as well as all other devices approved under the permit, plus an additional 25%.
Is a Credit Check Required for the Buncombe County Stormwater Management Bond?
Surety companies will run a credit check on the permit applicant to determine eligibility and pricing for the Buncombe County Stormwater Management bond. Applicants with excellent credit and work experience can expect to receive the best rates. Applicants with poor credit may be declined by some surety companies or pay higher rates. The credit check is a “soft hit”, meaning that the credit check will not affect the applicant’s credit.
How Much Does the Buncombe County Stormwater Management Bond Cost?
The Buncombe County Stormwater Management bond can cost anywhere between 0.75% to 12.5% of the bond amount per year. Insurance companies determine the rate based on several factors including your customer’s credit score and experience. The chart below offers a quick reference for the bond cost on a $10,000 bond requirement.
$10,000 Stormwater Management Bond Cost
|Credit Score||Bond Cost (1 year)|
|680 – 719||$150|
|650 – 679||$200|
|600 – 649||$400|
|550 – 599||$750|
|500 – 549||$1,250|
Who is Required to Purchase the Bond?
Buncombe county requires property owners and land developers to purchase a surety bond as a prerequisite to obtaining a stormwater permit. These permits are required whenever development or redevelopment occurs on a residential or commercial lot that is one acre or larger.
Stormwater permits are not required for any of the following activities:
- Breeding and grazing of livestock on agricultural land
- The production and/or harvesting of timber on forestland
- Activities regulated under the Mining Act of 1971
- Development or redevelopment on land that is less than one-acre
- Development on land whose owner has accrued a vested right
- Certain disturbing activities
How do Property Owners and Developers Apply for a Stormwater Permit in Buncombe County?
Property owners and developers in Buncombe County must navigate several steps to obtain a stormwater permit. Below are the general guidelines, but applicants should refer to the county’s code of ordinances for details on the process.
Permit Period – Buncombe County Stormwater Permits are valid until the project has been completed. However, permits will become void after 6 months from the date of issuance if significant progress has not been made.
Step 1 – Complete the Application
All Buncombe County Stormwater Permit applications must contain of the following items:
- Stormwater plan that has been completed by a licensed professional engineer or landscape architect. The plan must contain detailed designs and descriptions of all work to be performed.
- Plan Review Checklist
- Financial Responsibility/Ownership Form
- Agent Authorization Form (if the applicant is not the property owner)
A complete list of all stormwater management documents and forms can be found here.
Step 2 – Submit the Application
Property owners and developers can submit their completed permit applications electronically by emailing the Stormwater Administrator at [email protected] who will then set up a cloud folder for the applicant to upload the required files. Additionally, applications may be delivered in-person to the following address:
County of Buncombe County
46 Valley Street
Asheville, North Carolina 28801
Property owners and developers must pay all required fees when submitting their applications.
Step 3 – Purchase a Surety Bond
Stormwater permit applicants must purchase and maintain a surety bond with a limit that is equal to the total estimated construction costs of the stormwater system, as well as all other devices approved under the permit, plus an additional 25%.
Do Buncombe County Stormwater Permits Need to be Renewed?
No, property owners and developers do not need to renew their stormwater permits as they will remain active until the project is complete. However, the permits will become void after 6 months from the date of issuance if significant progress has not been made.
What are the Insurance Requirements for Buncombe County Stormwater Permits?
Buncombe County does not require applicants to obtain any form of liability insurance as a prerequisite to obtaining a stormwater permit. Applicants must purchase and maintain a surety bond.
How Do Buncombe County Stormwater Permit Holders File Their Bonds?
Permit holders should submit their completed bond forms, including the power of attorney, electronically or deliver them to the following address:
County of Buncombe County
46 Valley Street
Asheville, North Carolina 28801
The surety bond requires signatures from the surety company that issues the bond, the permit applicant, and licensed notaries verifying the signatures of both parties. The surety company should include the following information on the bond form:
- Legal name and address of entity/individual(s) buying the bond
- Surety company’s name and address
- Bond amount
- Name of the project
- Project’s number
What Can Buncombe County Stormwater Permit Holders Do to Avoid Claims Against Their Bonds?
To avoid claims on their bonds, stormwater permit holders in Buncombe County must ensure that they properly install all stormwater systems.
What Other Insurance Products Can Agents Offer Stormwater Permit Holders in Buncombe County?
Buncombe County does not require stormwater permit holders to purchase any form of liability insurance as a prerequisite to obtaining a permit. However, most permit holders will obtain this insurance anyway. Bonds are our only business at BondExchange, so we do not issue any other types of insurance, but our agents often utilize brokers for this specific line of business. A list of brokers in this space can be found here.
How Can Insurance Agents Prospect for Buncombe County Stormwater Permit Holder Customers?
Buncombe County conveniently provides the public with a database of all permit holders in the county. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.