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Beware of Unlicensed Contractors

Why you should always hire a contractor who’s Licensed, Bonded and Insured

When building or remodeling your home, it may be tempting to hire an unlicensed contractor. Without the added expenses such as licensing and insurance, they are able to provide services at a lower rate than their legitimate competitors.

Here are just a few reasons why you should beware of unlicensed contractors and always hire a licensed, bonded and insured contractor to work on your home:

 

Licensed contractors have completed the required educational programs and have the knowledge to ensure that the work is done properly and safely. Unlicensed contractors cannot pull the necessary permits you may need thereby opening you (not them) up to potential fines.

Allowing an unlicensed contractor to perform work on your home could also void your homeowner’s insurance policy.

A bond is intended to act as a guarantee that the contactor will perform the work as he or she has agreed to do. You should always ask for proof of their bond, and be sure you understand exactly what it covers.

Contractors should carry two types of insurance: liability and workers compensation if they have employees.

As a homeowner, these protect you in two ways. Liability insurance will protect you in the event the contractor causes damage to your home. Workers Compensation will protect you if a worker injures themselves on your property.

So, how do you verify if a contractor is actually licensed? You can start by requesting their license number and looking them up in the state’s database.

Oregon state residents can look at the Oregon Contractor’s Board website to verify a contractor’s license.

Washington state residents can look at Washington’s Labor and Industry website to verify a contractor’s license.

Don’t be tempted by dishonest contractors. Protect yourself and your home by using a legitimate contractor on your next home improvement project.

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