New Jersey Firm Grows Bonded Surety Plan in Southeast for Apartment Owners and Tenants

MIAMI-It took the real estate background that Ron Davies and his partners put on the table last May for Converge Services Group to breath life into a bonded insurance program Bankers Insurance Group created but found difficulty in marketing as part of its standard product portfolio. Since reaching a partnership agreement with the St. Petersburg-based insurer, Summit, N.J.-based Converge Services Group now manages a bonded real estate surety program that covers the owner-mangers of about 20,000 apartment units in Florida.

Starting with an existing subscriber base, Converge has experienced strong demand for the surety in Broward, Dade and Palm Beach counties where the insurance covers about 8,000 apartments. Orlando has 5,000 units covered. The surety bonds also cover about 9,500 apartment units in North Carolina (5,000 units in Charlotte) and another 5,000 throughout Georgia and South Carolina.

Florida accounts for only part of the success of the SureDeposit surety program. The plan enables apartment owners to charge tenants a reduced deposit fee but still maintain security over the property in the event of damage.