Who requires it
Iowa Plumbing and Mechanical Systems Board (DIAL)
License & permit · Iowa
Iowa Plumbing & Mechanical Contractor Bond
Iowa does not split plumbing, HVAC, refrigeration, sheet metal, and hydronic contractor licenses into separate statewide surety products. Iowa Code § 105.19 requires every chapter 105 contractor licensee to maintain public liability insurance and a surety in the amount the Plumbing and Mechanical Systems Board sets by rule. 481 IAC 431.3 fixes that surety at a minimum of $5,000 for the licensing period. One entity bond covers all plumbing or mechanical work the legal entity performs; sole proprietors must hold the bond personally.
Common bond amount
$5,000
Board minimum under 481 IAC 431.3(3); one contractor-license surety covers chapter 105 plumbing/mechanical disciplines.
How you file
File the PMSB contractor bond; it names customers, not the state
Renewal
Maintain during the contractor license period; 10-day cancellation notice to the board
Who requires it
Persons or entities that provide plumbing, mechanical, HVAC, refrigeration, sheet metal, or hydronic systems services on a contractual basis and hold—or are applying for—a contractor license with the Plumbing and Mechanical Systems Board through DIAL. Individual master or journeyperson credentials alone are not the contractor-license path this bond supports.
How much is required
Section 105.19 directs the board to set the surety amount by rule. Rule 481—431.3(3) implements that authority with a five-thousand-dollar minimum. The amount does not change by trade discipline; plumbing and mechanical classifications share the same contractor-license bond.
How to get and file it
Have an Iowa-authorized surety issue a contractor performance bond of at least $5,000 that cannot be canceled without ten days’ written notice to the board. DIAL materials direct that the bond name customers of the contractor (or persons injured by breach of a construction contract) rather than naming the state or the board. Submit evidence with the contractor license application and keep coverage active for the license term. Maintain the surety for the entire contractor licensing period. Coordinate renewals with the board’s June 30 license cycle and the companion DIAL contractor registration under chapter 91C. Replace the bond before any cancellation effective date so the license does not fall out of compliance.
Cost note
Five thousand dollars is the required bond amount, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Minimum amount
- $5,000
- Covered disciplines
- Plumbing, mechanical, HVAC, refrigeration, sheet metal, and hydronic contractor work under chapter 105
- Holder
- Sole proprietor personally, or legal entity covering all plumbing/mechanical work of the entity
- Related insurance
- Public liability insurance of at least $500,000 also required
Official sources
Related resources
Frequently asked questions
Do I need a separate Iowa bond for HVAC and plumbing?
No. The contractor license surety is one bond under § 105.19 and 481 IAC 431.3. You still need a master of record for each discipline in which the contractor operates, but the required amount does not multiply by trade.
Is the $25,000 out-of-state contractor bond the same product?
No. Out-of-state contractors registering under Iowa Code chapter 91C file a separate $25,000 DIAL registration bond. That registration bond is not a substitute for the $5,000 Plumbing and Mechanical Systems Board contractor-license surety.
Related Iowa bond guides
Motor Vehicle Dealer Bond
$75,000
Iowa motor vehicle dealers and towable recreational vehicle dealers must file a $75,000 surety bond with the Department of Transportation before the dealer license issues. Iowa Code § 322.4 sets the seventy-five-thousand-dollar amount for dealers selling vehicles that require a certificate of title. 761 IAC 425.4 applies the same $75,000 amount to towable RV dealers and allows a dual-licensed dealer at one name and principal place of business to rely on a single bond. Evidence stays on file with the motor vehicle division, and the original bond remains with the dealer’s business records.
Mortgage Lender Bond
$25,000 / $100,000 / $150,000
Iowa mortgage bankers, mortgage brokers, and closing agents must maintain chapter 535B sureties with the Division of Banking. Iowa Code § 535B.9 starts mortgage broker and banker applicants at $100,000 until the superintendent’s volume schedule applies, and it sets closing agents at $25,000. 187 IAC 18.2 implements the operative banker/broker amounts: $100,000 when prior-year residential mortgage volume is $100,000,000 or less, and $150,000 when volume exceeds $100,000,000. Filings run electronically through NMLS.
Public Adjuster Bond
$50,000+
Iowa public adjusters and independent adjusters must show financial responsibility before the Insurance Division issues a chapter 522C license. Iowa Code § 522C.7 requires a surety of at least $50,000 in favor of the state. The Division also accepts professional liability/errors-and-omissions insurance or an irrevocable letter of credit that meets its financial-responsibility standards. Business entities can cover affiliated employee adjusters; independent contractors generally need their own qualifying proof.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
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Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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