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What is a Utility Deposit Bond?

A utility bond is a form of insurance that home or business owners purchase to ensure timely payments to a utility company. Businesses usually have to have the bond before utilities are turned on. Home owners do not always need this surety bond, so the utility company should let the home owner know whether they require a utility bond. Often, home owners who have a history of late payments are asked to obtain a utility bond to ensure payment to the utility company.

Before home or business owners purchase a bond from an agency, they must submit themselves to a credit check, have their application approved, and go through other screening processes.

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