Salisbury Demolition Permit Bond: A Comprehensive Guide
May 27, 2022
This guide provides information for insurance agents to help their customers obtain a Salisbury Demolition bond
At a Glance:
- Average Cost: $100
- Bond Amount: Maximum of $2,000 (more on this later)
- Who Needs it: Contractors applying for a permit to move or demolish a building in Salisbury, North Carolina
- Purpose: To ensure the city will receive compensation for financial harm if the contractor fails to complete the job and clear all debris
- Who Requires the Bond: The City of Salisbury
Salisbury Municipal Code 7-61 requires all contractors seeking to move or demolish a building to obtain a permit with the Code Services division. The Salisbury City Council enacted the permit requirement to ensure that building demolitions and relocations do not adversely affect the city. To provide financial security for the enforcement of the permitting requirement, contractors must purchase and maintain a surety bond to be eligible for a permit.
What is the Purpose of the Salisbury Demolition Permit Bond?
Salisbury requires contractors seeking to move or demolish a building to purchase a surety bond as part of the application process to obtain a permit. The bond ensures that the city will receive compensation for financial harm if the contractor fails to abide by the regulations outlined in Salisbury Municipal Code 7-63. Specifically, the bond protects the public if the contractor abandons the job or fails to clean up all debris. In short, the bond is a type of insurance that protects the public if the contractor does not fulfill their duties.
How Can an Insurance Agent Obtain a Salisbury Demolition Permit Surety Bond?
BondExchange makes obtaining a Salisbury Demolition Contractor bond easy. Simply log in to your account and use our keyword search to find the “Salisbury” 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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How is the Bond Amount Determined?
Salisbury Municipal Code 7-63 grants the city the authority to set the required bond amount on a case-by-case basis. However, the bond amount may not be larger than $2,000. When determining the bond amount, the city will examine the project’s scope, location, and the likelihood that the demolition/move will be conducted in a safe manner.
Is a Credit Check Required for the Salisbury Demolition Permit Bond?
A credit check is not required for the Salisbury Demolition Permit bond. Because the bond is considered relatively low risk, the same low rate is offered to all contractors regardless of their credit history.
How Much Does the Salisbury Demolition Permit Bond Cost?
The Salisbury Demolition Permit bond costs just $100.
Who is Required to Purchase the Bond?
All contractors seeking to move or demolish a building in Salisbury, North Carolina must purchase a surety bond as a prerequisite to obtaining a permit.
How do Contractors Apply For a Demolition Permit in Salisbury?
Contractors must navigate several steps to obtain a demolition permit in Salisbury. Below are the general guidelines, but contractors should refer to the city’s permitting page for details on the process.
Step 1 – Complete the Application
All Salisbury Demolition Permit applications should be submitted to the Code Services division at the following address:
132 North Main Street
Salisbury, NC 28144
Contractors must complete the application in its entirety, and pay a $50 fee.
*Important Note: Demolitions that take place in a Local Historic District must receive approval from the city’s Historic Preservation Commission (HPC). Additionally, the HPC must be notified of all demolitions occurring in a National Register District at least 90 days before they take place (this requirement may be waived if the building has no historic value).
Step 2 – Purchase a Surety Bond
After reviewing the contractor’s application, the division will inform them of their required bond amount.
Do Contractors Need to Renew Their Salisbury Demolition Permits?
No, contractors in Salisbury do not need to renew their demolition permits. However, contractors must apply for a new permit for each demolition/moving job they undertake. Demolition permits will expire 6 months from the date of issuance if the project has not started.
What are the Insurance Requirements for Demolition Permits in Salisbury?
Salisbury does not require contractors to purchase any form of liability insurance as a prerequisite to obtaining a demolition permit. However, most reputable contractors will purchase this insurance anyway. Contractors must purchase a surety bond to be eligible for a demolition permit.
How Do Contractors File Their Salisbury Demolition Permit Bonds?
Contractors should submit their completed bond forms, including the power of attorney, to the Code Services division at the following address:
132 North Main Street
Salisbury, NC 28144
The surety bond requires signatures, as well as witness signatures, from both the surety company that issues the bond and the contractor. The surety company should include the following information on the bond form:
- Legal name and permit classification of the entity/individual(s) buying the bond
- Surety company’s name and state of incorporation
- Entity requiring the bond
- Bond amount
- Date the bond goes into effect
- Date the bond is signed
What Can Contractors do to Avoid Claims Against Their Salisbury Demolition Permit Bonds?
To avoid claims against their Demolition Permit bonds, contractors in Salisbury must ensure that they complete all projects and clean up all leftover debris within 20 days of the demolition/move taking place.
What Other Insurance Products Can Agents Offer Contractors in Salisbury?
Most reputable contractors 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 Salisbury Demolition Permit Bond Customers?
Salisbury unfortunately does not provide a public database of active demolition permits in the city. We suggest contacting the Code Services division to obtain this information. Contact BondExchange for additional marketing resources. Agents can also leverage our print-mail relationships for discounted mailing services.