Utility bond cost
Certain utility service providers in Iowa require customers to post surety bonds in lieu of cash deposits. Bond amounts vary on a case-by-case basis, so applicants should verify their required amount of bond coverage with their utility company prior to bonding.
Because the required bond amount and, therefore, the price of this bond can fluctuate so much, our experts recommend submitting a bond request to begin the bonding process. You’ll be connected with a surety specialist who will walk you through our fast and easy bonding process.
Why this bond
Utility deposit bonds in Iowa are put in place to ensure that principals (utility customers) pay their utility bills on time and in full. If a customer accrues a balance for utility services received, the bond protects the utility company from financial loss up to the full amount of the bond. The principal, in turn, must reimburse the surety for all damages paid out.
Utility bond details
The fine print on utility deposit surety bonds in Iowa vary from utility company to utility company. Applicants should be sure they understand the terms of their bond agreement during the bonding process.
MidAmerican Energy Company bonds remain in effect for a period of 12 months from the effective date and automatically renew for an additional 12-month period thereafter. The surety can cancel the bond by giving written notice of cancellation to both the principal and the utility company at least 60 days prior to the effective termination date. Written notice must be sent by certified mail or by a nationally-recognized overnight delivery service.
Apply for your surety bond
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