How Surety Bonds Safeguard Homeowners Against Prolonged Repair Times

How Surety Bonds Can Help Safeguard Homeowners Against Prolonged Repair Times

In the aftermath of a storm, fire, or another catastrophic event, homeowners want to repair their properties as quickly as possible. Unfortunately, this process is taking longer than ever before. 

According to a J.D. Power survey, the average insurance claim cycle time has climbed up to 32.4 days. Even more striking, the average timeline from the first notice of loss to final payment is now 44 days—the longest it’s been since the study’s inception in 2008. These delays can derail homeowners’ customer satisfaction and inadvertently damage your reputation as a Property and Casualty (P&C) insurance agent.

The good news? You can remain in your clients’ good graces by educating them on the factors contributing to these home repair delays and supporting a seamless repair process with surety bonds. Below, we’ll break down these two suggestions in greater detail. 

Why Residential Home Repair Delays Are on the Rise

After diligently paying their home insurance premiums, many homeowners feel frustrated when it takes over a month to complete vital repairs, particularly if they don’t understand the reasons behind these delays. So, why are cycle times increasing? 

Some of the leading causes of delays include: 

• Labor shortages — According to the Associated Builders and Contractors (ABC), the construction industry needs an estimated 430,000 to 720,000 more skilled workers to meet current project demands. Young people simply aren’t entering the industry fast enough to replace retirees. 
• Contractor backlogs — Since contractors are in short supply, the ones in business are in high demand. After a natural disaster or catastrophic event, they’re often booked out for months, leading to significant scheduling bottlenecks.
• Material delays — Ongoing supply chain disruptions can slow down the material procurement process. President Donald Trump’s recent tariffs on steel and aluminum will likely only exacerbate this issue. 

Together, these issues create a perfect storm for repair delays. Beyond that, the insurance claims process can also be quite time-consuming after a catastrophic event. By the time a contractor can start repairs, the insurance claim has often already spent weeks in processing. 

How These Delays Impact Homeowners and P&C Agents

While home repair delays are largely out of insurance companies’ control, they still create serious challenges for homeowners. Many must scramble to find temporary housing or continue living in unsafe conditions, all while covering unexpected out-of-pocket costs.

Unfortunately, these frustrations can quickly extend to you, especially if your clients don’t understand the underlying causes of the delays. That’s why it’s critical to proactively educate your clients about the factors at play.

You can further strengthen client trust by recommending supplemental solutions, like requiring contractors to carry surety bonds.

Read More: Common Mistakes P&C Agents Make with Surety Bonds & How to Avoid Them

What Is a Surety Bond and How Does It Help?

Contractor surety bonds create a legal agreement between three parties: the contractor, the project owner (your clients), and the surety company. These bonds can reduce the risk of unfinished or poorly executed work during repair projects. Here’s how:

1. After accepting a project, a contractor’s surety bond guarantees that they will satisfy all project requirements. 
2. If the contractor fails to do so, your client can seek prompt compensation from the surety company. 
3. Your client can use this compensation to get their project back on track in a timely manner. 

As you can see, bonded contractors can provide homeowners with greater financial protection and peace of mind. Surety bonds also provide a stamp of credibility for contractors, since they must undergo a thorough underwriting process to verify their financial strength and business integrity.

Read More: The Important Role of Surety Bonds in Professional Licensing

When Are Surety Bonds Used in Residential Work?

While surety bonds are required for large commercial and public works projects, they’re typically optional in the residential space. Even so, they’re quickly growing in popularity for the following situations: 

• High-end remodels: When a homeowner is spending six figures on a home renovation, they often want an elevated level of protection. Working with bonded contractors is a reliable way to safeguard their investment. 
• Insurance-funded repairs: After receiving an insurance payout, homeowners are typically anxious to get their project completed as soon as possible. Bonded contractors are more likely to finish on time, thanks to their additional layer of accountability. 
• Post-catastrophe rebuilding: After a major storm, fire, or natural disaster, shady contractors often attempt to capitalize on homeowners’ urgency. By opting for bonded contractors, homeowners can weed out unsavory actors and enjoy financial protection if things go south.
• Out-of-town property owners: People with second homes or investment properties may be unable to monitor their project’s progress in person. By working with bonded contractors, they can rest assured that the job will get done right from afar. 
• Investor renovations: Landlords and property flippers who want to protect their profit margins often use surety bonds to reduce risk and ensure their contractors adhere to tight timelines. 

What P&C Agents Should Tell Their Homeowner Clients About Surety Bonds

As a P&C agent, your homeowner clients look to you for guidance, especially during their most vulnerable moments. By highlighting the benefits of working with bonded contractors during post-disaster repairs, you can help your clients avoid additional delays.

Here’s how you can educate your clients about the value of surety bonds as they navigate the insurance claims process:

1. Explain the risks of hiring unbonded contractors – Contractors who aren’t bonded often offer lower prices, but as the saying goes, you get what you pay for. Their lack of bonding means that your clients may have to foot the bill for any mistakes they make. 
2. Encourage clients to vet contractors thoroughly – After a catastrophic event, many homeowners are eager to hire a contractor as fast as possible. However, it’s important that your clients still do their due diligence by asking candidates the following questions:
   • “Are you licensed, bonded, and insured?”
   • “Can you provide proof of a surety bond?”
   • “Do you have positive reviews and references for similar work?”
3. Guide high-net-worth clients or landlords toward bonding – Clients with luxury homes or investment properties often view bonding as a strategic business decision. After all, working with bonded contractors helps protect their assets, minimize risk, and ensure continuity of income.
4. Position yourself as a trusted resource – Many homeowners aren’t familiar with surety bonds or how they work. By explaining their benefits, you can reinforce your role as a knowledgeable, solutions-oriented advisor.

How BOSS Bonds Can Support This Process

In summary, the data is clear: delays in home repair timelines are getting longer. And with catastrophic events on the rise, homeowners are eager to regain control and restore peace of mind. While surety bonds can’t solve labor shortages or supply chain disruptions, they can protect homeowners from the worst-case scenario: a contractor who disappears, defaults, or delivers substandard work.

If you want to help your homeowner clients make more informed decisions, BOSS Bonds is here to help. As a surety-only agency with over 40 years of experience, we work closely with P&C agents and partner with over 25 top-rated surety carriers across the country. By partnering with us, you’ll receive: 

• Expert guidance on when bonding makes sense for residential clients.
• Access to contractors who are pre-qualified and bondable.
• An easy-to-use online portal where you can generate quotes, track applications, and manage bonds in real time.

Ready to get started? Reach out to BOSS Bonds today!

Sources:

J.D. Power. Widespread Price Increases, Extreme Weather Events and Long Repair Cycle Times Strain Customer Satisfaction with Homeowners Insurance Claims, J.D. Power Finds.

https://www.jdpower.com/business/press-releases/2025-us-property-claims-satisfaction-study

ABC. Navigating the Construction Worker Shortage in 2025.

https://www.abcrmc.org/construction-worker-shortage/.

Construction Dive. Sweeping new tariffs put future construction projects at risk.

https://www.constructiondive.com/news/trump-tariffs-construction-risk-liberation-day/744334/