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Licensed Bonded and Insured Contractors – What Does it Mean?

Licensed Bonded and Insured Contractors – What Does it Mean?

Choosing the space you want to have remodeled in your home is tough enough with all the choices and designs, but what you should really spend time deciding on is what contractor you go with. There is absolutely nothing worse than a contractor not finishing the job and leaving you to figure out what went wrong. But there is risk mitigation when you work with a contractorwho is Licensed Bonded and Insured. Check these facts first before you decide on what contractor to make your home remodeling contractor.

“We’re Licensed Bonded and Insured. So What?”

License, please. Don’t worry, you aren’t being pulled over, but you sure do need to pull up a seat and read this before hiring a contractor. Find a contractor who is licensed. What does this mean? Well, anyone can claim they can do the work, but only a licensed contractor by the state should be the first sign you look for. You see, just because someone thinks you can, doesn’t mean they actually can. A handyman who tells you they can gut your entire kitchen but fails to get the necessary license could be flying blind and leading you down a path you do not want to end up. Each state offers a license to businesses that require certain education or work experience. Make sure you check that your contractor is actually licensed in the state before you sign anything and don’t just take their word for it. A licensed contractor will be able to show proof and proof is what you should ask for.

If that isn’t reason enough, many states offer implied warranties for shoddy workmanship when it comes to licensed contractors. After all, it was the state who gave them the license. Hiring an unlicensed contractor that fails to deliver on promised work can leave you up the creek without a paddle when it comes to filing claims with the state. Often times you will be on your own when trying to go after an unlicensed contractor without the aid of the state contractor board.

Last, but definitely not least, is insurance. Unlicensed contractors are not required to carry insurance, unlike licensed contractors. What does this mean for you? It could mean a bunch of money coming out of your pockets. If an unlicensed contractor falls off a ladder or steps through a roof while on your property you will be liable for the damages and possible lawsuit. A licensed contractor is required to carry workers comp which means that they would cover any injuries their employees had on the job.

The internet makes it a million times easier to check up on your potential contractor with the ease of many review sites such as Guild Quality, Houzz and Google. Check that their website is up to date and that they are responsive to people on social media. Make sure to check out what other homeowners said before you take the plunge. A good contractor will be willing and happy to give you a list of past projects and client referrals. Do your homework with these few things and keep yourself sleeping easy during your future remodel project.

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1 COMMENT

  • Kayal
    April 13, 2018, 7:28 am REPLY

    Our sister wants to remodel her house because she wants to expand her house for a garage. It was interesting how you pointed out here that there are licensed and bonded contractors. We didn’t know how important it is for remodeling contractors to be insured especially when they’re injured while working.

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