Why Use Licensed Contractor
Most licensed contractors offer liability insurance to protect you, your family and your home. Liability insurance protects against bodily injury, bodily injury and property damage that may occur during your renovations. If, for example, a visitor is injured while entering the construction site, insurance coverage covers the medical expenses incurred. But do you really need a contractor with liability insurance and workers` compensation? If you`re lucky, you don`t need to have it in place. But if you`re unlucky and something goes wrong, you`ll definitely be grateful to do it. It`s just not something you want to risk. If you learn that a contractor is NOT properly licensed, liability insurance is there to protect you in case your contractor causes damage to your home. So, let`s say that during a kitchen renovation, your contractor installs the sink incorrectly and causes water damage to your home. Your home insurance policy will not cover you unless you specifically purchased home employee coverage. When it comes to workers` compensation, your contractor must have it for themselves and their employees. This insurance protects you, the owner, in case someone is injured on the job. Why should you be protected if someone else is hurt? Especially with major renovations, you need to make sure that you comply with city ordinances or city requirements and permits. With a licensed contractor, you can breathe a sigh of relief when the city inspects your home, knowing that it has complied with safety and other regulations.
This will also come in handy if you plan to sell your home in the near future. Potential buyers, of course, will apply for the necessary permits, and if you haven`t obtained an authorized and bound contractor, you don`t have to give them anything. A loan or “guarantee” is in fact required by each state. You should never take your contractor`s word for it that there is one, but ask for proof and make sure you understand exactly what they are covering. If something goes wrong during the project, or if the work is not to your satisfaction or agreed specifications, you can take care of the deposit. As noted above, the fact that they are authorized provides minimal assurance that the person providing the Services: (1) possesses the required skills and character; (2) includes local laws and codes; and (3) knows the basics of managing a procuring entity. This may vary from state to state, depending on the requirements imposed by each state, but it is generally a good rule of thumb. During the post-storm cleanup, unsuspecting consumers can be easy prey for unlicensed contractors, whose bids will almost inevitably be much lower than those offered by licensed contractors. The strong lure of saving money can be overwhelming, but buyers need to be careful. Perhaps the cheapest contractor available is the one that costs the most in the long run. First, the fact that you hire authorized contractors provides minimal assurance that the person providing the Services: (1) has the required skills and character; (2) includes local laws and codes; and (3) knows the basics of managing a procuring entity. In California, for example, to qualify for a license, an entrepreneur must demonstrate four years of travel experience in their business and pass both a business audit, a license audit, and a business audit.
In addition, since 2005, all new entrepreneurs must pass a criminal background check. In other words, the fact that a contractor is licensed means that they are much more likely to have the knowledge to ensure that the work complies with the code and is being done correctly. Before a contractor can legally operate, he or she must have a license. And that`s good for you too. Are you thinking of renovating your decades-old kitchen or redecorating your bathroom and finally installing the bathtub you`ve always dreamed of? Whether the work to be done in your home is large or small, it`s always wise to hire a licensed contractor to do the work for you. As mentioned earlier, reputable licensed contractors have liability insurance and workers` compensation insurance that can protect you from negative legal consequences. Finally, your contractor will oversee your project and ensure it is completed on time, within budget and to your specifications. This relieves you so that you can simply enjoy the process. Because if there is no workers` compensation, you, the owner, can be held liable for the injury, and it is likely that you will be sued by the unauthorized contractor or injured worker to pay their medical bills.
This can result in a relatively affordable renovation at a much higher cost. Sometimes we talk about tens of thousands of dollars when you factor in medical bills, legal fees, and compensation for lost wages. Of course, it`s important that you clearly communicate your goals, needs, and wishes to your contractor at an early stage. When you do, you should see that your ideas become your reality without worry or delay.