What you need to know before hiring unlicensed contractor or handyman
Can you legally hire unlicensed contractor?
It is legal for unlicensed contractors to work on projects that don’t exceed a certain value, but this value varies per state. For instance, in California, the limit is $500. However, as a homeowner, it’s important to ensure that anyone working on your property has bond and compensation insurance. If they don’t, you can ask them to sign a liability waiver. Having proper business and professional licenses benefits both parties, the homeowner and the contractor. If a contractor is unlicensed, they cannot sue the homeowner for payment for their work.
However, homeowners who hire unlicensed contractors are exposed to certain risks:
Risks for hiring unlicensed contractor:
- If a worker gets injured while working on your property and doesn’t have proper bonding and insurance, they may sue you. This means that you may end up being financially liable for the damages, including medical bills and lost wages.
- If you hire an unlicensed contractor for the installation of appliances or applications, you’ll forfeit any warranties associated with the products.
- you won’t have the legal right to sue the contractor or the handyman for any shoddy work or for failing to complete the job.
- Unlicensed contractor cannot obtain building permits. As a result, it won’t be possible to properly inspect their work to ensure that it meets the necessary standards
In summary, it is advisable to verify the professional and business licenses, classifications indicating their primary expertise, and their bond, workers’ compensation, and liability insurances of the candidates you consider for hire
You should be able to find all information on the DEPARTMENT OF CONSUMER AFFAIRS, CONTRACTOR’S STATE LICENSE BOARD of your state website.
In California, you can go to this link: Check A License – CSLB (ca.gov) to check a Contractor License or Home Improvement Salesperson (HIS) Registration.
For more information on the subject, check our related posts.
5 Amazing Tips for Hiring the right contractor or Handyman
4 Important Points Every Remodeling Agreement must include.
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Will you save money when hiring a handyman?
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