High Point Land Improvement Bond: A Comprehensive Guide
May 20, 2022
This guide provides information for insurance agents to help their customers obtain a High Point Land Improvement bond
At a Glance:
- Average Cost: Between 1% to 12.5% of the bond amount per year based on the applicant’s credit history
- Bond Amount: $2,000 per disturbed acre
- Who Needs it: Developers applying for a land-disturbing permit in High Point, North Carolina
- Purpose: To ensure the public will receive compensation for financial harm if the developer fails to enact proper erosion control measures
- Who Requires the Bond: The City of High Point
High Point Development Ordinance 2.5.10 requires developers conducting certain land-disturbing activities to obtain a permit from the Engineering Services Department. High Point enacted the permit requirement to ensure that land-disturbing activities do not cause excessive erosion. To provide financial security for the enforcement of the permitting requirement, developers must purchase a surety bond to be eligible for a land-disturbing permit.
What is the Purpose of the High Point Land Improvement Bond?
High point requires developers to purchase a surety bond as part of the application process to obtain a land-disturbing permit. The bond ensures that the city will receive compensation for financial harm if the developer fails to abide by the regulations outlined in High Point Development Ordinance 6.3. Specifically, the bond protects the city if the developer fails to implement the required erosion control measures. In short, the bond is a type of insurance that protects the city if the developer violates the terms of their permit.
How Can an Insurance Agent Obtain a High Point Land Improvement Surety Bond?
BondExchange makes obtaining a High Point Land Improvement bond easy. Simply log in to your account and use our keyword search to find the “improvement” 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.
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Is a Credit Check Required for the High Point Land Improvement Bond?
Surety companies will run a credit check on the applicant to determine eligibility and pricing for the High Point Land Improvement 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 High Point Land Improvement Bond Cost?
The High Point Land Improvement bond can cost anywhere between 1% 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 Land Improvement Bond Cost
|Credit Score||Bond Cost (1 year)|
|680 – 719||$150|
|650 – 679||$200|
|600 – 649||$400|
|550 – 599||$750|
|500 – 549||$1,250|
*The credit score ranges do not include other factors that may result in a change to the annual premium offered to your customers, including but not limited to, years of experience and underlying credit factors contained within the business owner’s credit report.
Who is Required to Purchase the Bond?
High Point requires developers to purchase a surety bond as a prerequisite to obtaining a land-disturbing permit. A permit is required for all land-disturbing activities that:
- Take place on more than 1 acre of land
- Are located on highly erodible soil with a “k” factor greater than 0.36
- Include water quality ponds or retention structures in watersheds or drains into one
- Are located in Tier 1 or 2 portions of a WCA
- Require extensive erosion control measures, including activities conducted in an existing uncovered area
Exemptions to the permit requirement include land-disturbing activities that:
- Do not take place in any of the above conditions
- Are done during an emergency to protect human life
- Consist of storing materials in processing plants if proper sediment control measures are enacted
- Take place on agricultural land for the benefit of raising plants and/or animals
- Take place in forest land for the purpose of harvesting timber
- Are performed by persons regulated under the Mining Act of 1971
- Take place on lands in which the state has sole regulatory authority
- Are necessary for the construction of accessory structures to buildings when not more than 1,000 square feet of land is disturbed
How do Developers Apply for a Land-Disturbing Permit in High Point?
Developers in High Point must navigate several steps to obtain a Land-Disturbing Permit. Below are the general guidelines, but developers should refer to the permitting statutes for details on the process.
Permit Period – All High Point Land-Disturbing Permits expire one year from the date of issuance unless the project has made significant progress
Step 1 – Schedule a Pre-Application Conference
High Point recommends that permit applicants attend a pre-application conference with city staff to learn about the application process and have their questions answered. This conference also allows the city to learn more about the project before reviewing the application. To schedule a pre-application conference, developers should contact the city’s Engineering Services Department at (336) 883-3194.
Step 2 – Create a Soil Erosion And Sedimentation Control Plan
High Point requires all applicants for a Land-Disturbing Permit to create an erosion and sedimentation control plan detailing how they plan to ensure that erosion and sedimentation runoff do not adversely affect the town as a result of their activities.
The plan must be prepared by and signed by a licensed professional engineer, registered landscape architect, certified professional in erosion and sedimentation control (CPESC), or a
registered surveyor (plans for sites that are less than 1 acre do not require signatures from any of the aforementioned persons).
All plans must contain adequate information to describe both the land development and erosion and sedimentation control measures, including architectural and engineering drawings, maps, assumptions, calculations, and narrative statements.
Applicants should submit their completed plan, including a signed financial responsibility form, to the Erosion Control Program located on the second floor of High Point City Hall at 211 South Hamilton Street.
Step 3 – Pay the Required Fee
When submitting their erosion and sedimentation control plan, applicants must pay a fee that is equal to:
- $345 for the first acre
- $115 per additional acre (round up)
Step 4 – Purchase a Surety Bond
Applicants must purchase a surety bond in an amount that is equal to $2,000 per disturbed acre
Step 5 – Attend a Pre-Construction Conference
After submitting their erosion and sedimentation control plan and purchasing a surety bond, applicants must attend a pre-construction conference, located at the construction site, with a representative from the Engineering Services Department. After the conference, the developer will be issued a permit.
What are the Insurance Requirements for Land-Disturbing Permits in High Point?
High Point does not require developers to obtain any form of liability insurance as a prerequisite to obtaining a Land-Disturbing Permit. However, developers may have to purchase insurance before being issued a building permit. Developers must purchase and maintain a surety bond in an amount that is equal to $2,000 per disturbed acre.
How Do High Point Developers File Their Land Improvement Bonds?
Developers in High Point should submit their completed bond forms, including the power of attorney, to the following address:
211 S Hamilton St (Second Floor)
High Point, NC 27260
The surety bond requires signatures from both the surety company that issues the bond and from the applicant. The surety company should include the following information on the bond form:
- Legal name and state of incorporation of entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Bond amount
- Name of the city’s development order
- Name of the development
- Date the bond is signed
What Can High Point Developers Do to Avoid Claims Against Their Land Improvement Bonds?
To avoid claims on their Land Improvement bonds, developers in High Point must ensure that they adequately construct all required erosion control measures and ensure the public is not harmed by erosion or sedimentation runoff as a result of their land-disturbing activities.
What Other Insurance Products Can Agents Offer Developers in High Point?
Most reputable developers will purchase liability insurance. 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 High Point Developer Customers?
High Point conveniently provides a public database of active construction permits in the city. We also suggest contacting the Erosion Control Division for additional information on developers with Land-Disturbing permits. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.