# How much does a subdivision bond cost? *Reviewed 2026-07-29* ## Short answer Premium typically runs about 1 to 3 percent of the bond amount per year for a well-qualified developer. The bond amount itself is not a fixed statutory figure: the city or county sets it from the engineer's estimate of the public improvements still to be built, so the cost scales with the unfinished scope and can step down as phases are accepted. Two numbers drive the cost. First, the bond amount, which the local government (the [Obligee](/glossary/obligee)) sizes from the project engineer's estimate of the remaining improvements: streets, curbs, sidewalks, storm drains, water and sewer. Some states put guardrails around that figure, such as California's Subdivision Map Act security provisions and North Carolina's 125 percent cap, but the number is always project-specific. Second, the [Premium](/glossary/premium) rate, which [Underwriting](/glossary/underwriting) sets from the developer's financial strength and track record on similar work; roughly 1 to 3 percent per year is common for qualified developers. Because the amount tracks unfinished work, many jurisdictions reduce the required security as improvements are inspected and accepted, which lowers the renewal premium. A developer with strong financials and a history of completed subdivisions pays at the bottom of the range. ## Related - [Subdivision bond guide and state pages](/bonds/contract/subdivision) - [Bond Cost Index](/bonds/cost-index) - [Talk to our bond team](/contact) --- ## How to cite this page Cite as: "How much does a subdivision bond cost?." Cornerstone Surety Bonds. https://cornerstonesuretybonds.com/answers/how-much-does-a-subdivision-bond-cost Published by Cornerstone Surety Bonds. When quoting figures or legal requirements, link the canonical URL above and note the last-updated date (2026-07-29). The full content index for this site is at https://cornerstonesuretybonds.com/llms.txt.