Why Hire a Licensed Contractor?
Every week I get flyers through my door advertising home improvement and handyman services. You’ll find hundreds of ads for such services on Craigslist. Most people advertising this way are unlicensed contractors.
Many of these advertisers are probably good guys just trying to get some work. Some have been recently laid off. They’re handy and willing to come by to fix a door or change a light switch. Many have had years of experience in the construction trades. You might think these guys will work cheaply. And you may be right. But you should know a few things before you hire someone who’s unlicensed.
1. If you hire an unlicensed contractor, you may have no recourse if he or she damages your home. Maryland law is quirky when it comes to unlicensed contractors. It doesn’t protect the worker or the homeowner. Nonperformance of work, shoddy workmanship, or damage to your home is very hard to prove if it involves someone who’s unlicensed.
2. Being unlicensed doesn’t automatically mean the contractor works for less money. It only costs about $2,000 and a little time to go legitimate. Most of that cost is for liability insurance and licensing fees, which cover the cost of the Maryland Home Improvement Guaranty fund. This fund can compensate homeowners if a LICENSED contractor fails to perform contracted work. If the contractor is unlicensed, you’re on your own. No compensation.
3. Worker injuries may become the responsibility of you, the homeowner, if you use an unlicensed contractor. Workers’ compensation laws require all contractors to carry insurance to protect (themselves and?) their workers in case of injury. Most unlicensed contractors flout this regulation.
4. All licensed contractors are required to carry liability insurance to protect the homeowner’s property. Accidents happen. Fires, structural collapses, and broken water and sewer lines can damage or even destroy a home. If your contractor is unlicensed, he’s probably uninsured too. Do you really want to try to explain to your homeowners insurance company that it must pay for damage caused by an uninsured contractor?
These are just a few of the problems that can arise from using an unlicensed contractor. In my mind it’s pretty scary stuff and not worth the risk. How about you?
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