The importance of contractor licensing and insurance: Protecting your home improvement project

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Home improvement projects can be incredibly rewarding, transforming your living space and home into the place you’ve always dreamed of. However, embarking on these projects without due diligence can become problematic if you don’t verify the home improvement contractor you hire when doing the work. One crucial aspect of responsible home improvement is ensuring that your chosen contractor holds the necessary licenses and insurance.

Recently we’ve seen an uptick in home improvement scams in Montgomery County specifically, which has been covered in the news. In a news article in WTOP, they wrote:

“In many of these cases, so-called contractors show up to a person’s home and offer to do projects for them. They will say they have leftover materials from another project they are doing nearby and offer a deal to work on your home.

There are also those called “woodchucks” — people who get you to hire them to trim trees, and then while cutting tree limbs, they will tell you there is something wrong with your roof and that they can help you fix the issue.

Another common type of scammer is known as a “traveler.” In these cases, a person shows up, convinces a homeowner to pay a down payment for a project then disappears.

The first rule is to never hire someone who isn’t licensed, and always do your homework on a contractor you are considering hiring.”

As you can see, it’s important to know who you are hiring and to make sure they are properly licensed and insured. This is a critical step when hiring a general contractor.

Why it’s important for a home contractor to be licensed

Quality Assurance: Licensed contractors have undergone training, exams, and meet specific standards set by the Maryland Department of Labor through the Maryland Home Improvement Commission (MHIC). This ensures that licensed contractors possess the skills and knowledge needed to carry out your project effectively, safely, and professionally.

Legal Compliance: Operating without a contractor’s license is not only risky for the homeowner but also illegal in many areas. Hiring an unlicensed contractor can lead to legal complications, fines, and even project shutdowns.

Accountability: A licensed contractor is accountable for their work. If something goes wrong or doesn’t meet the agreed-upon standards, you have a legal avenue to seek recourse with the MHIC. Insurance, on the other hand, provides a financial safety net if accidents or damage occur during the project.

How to verify and check our MHIC contractors license

V’s Home Improvement is proud to be fully licensed in the State of Maryland, and our MHIC license registration number is 118952. To verify and check our state contractors license, go to the State of Maryland Department of Labor website to search for us by name or you can search by name or simply our License Number. Of course if you have any questions about this, you can contact us directly.

Why it’s important for a home contractor to be insured

Financial Protection: Accidents and unforeseen events can occur during a home improvement project. Without insurance, you might be liable for medical bills, property damage, or legal fees. Contractor insurance protects you from these potential financial burdens.

Completion Guarantee: If your contractor goes out of business or fails to complete the project, their insurance can help cover the costs of hiring another professional to finish the job. This ensures that your project doesn’t remain incomplete.

Peace of Mind: Knowing that your contractor is insured gives you peace of mind. You can focus on the project without worrying about unexpected expenses or delays caused by accidents.

How to verify and check our contractors insurance

There is not state authority on this, as insured businesses may use different insurance companies. To verify and check, just simply request proof from us and we can provide you with our insurance certificate. This official document issued by our insurance company outlines the type and amount of coverage we have and that it’s still active and not expired. In addition, you can contact the insurance company directly listed on the certificate to confirm our coverage.

If you need other helpful tips on your home improvement project, read over the rest of our blog for ideas. Additionally, if you’re in Maryland areas like Hagerstown, Frederick, Mt. Airy, and surrounding regions and need professionally licensed and insured general contractors to help you with your home project, call us at 301-820-5134 for a free estimate so we can take the hard part off your hands and get it done professionally and done right so you can have the home of your dreams!