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What Is An Encroachment Bond?
An encroachment bond is a type of permit surety bond typically required by a local municipality when construction work that is going to be performed on private property, could encroach onto government land such as a highway, public road or easement.
To protect itself in the event a contractor damages or alters public property during construction, the local city or county where work is being performed may require a contractor to obtain an encroachment bond prior to commencing work. This bond provides a financial assurance to the local government that unintentionally altered public property will be returned to its original condition.
Like other surety bonds, should a valid claim occur and a bond payout is made, a contractor is ultimately responsible for repaying the claim to the surety, unlike insurance.
When Are Encroachment Bonds Required?
Each municipality or governing district where work is being performed by a contractor will have specific rules on when an encroachment bond is required, including bond amounts, as well as the process for filing the bond with the city/county in question.
Below are a few links to additional encroachment bond resources for specific cities in California. If you don’t see your city on the list below, please complete the quote request form on this page or give us a call and a bonding expert from our office can help track down your specific encroachment bond requirements.
How Much Does An Encroachment Bond Cost?
Encroachment bonds are generally fairly inexpensive as many encroachment bond requirements tend to be for low bond amounts. As the bonding amount required for a particular encroachment bond increases, so does the scrutiny by the issuing surety as larger bond amounts typically indicate more complex projects.