Smart Hiring: The Importance of Using a Bonded, Insured Contractor

Bonded, Insured Contractor

The Importance of Using a Bonded, Insured Contractor

Hiring a bonded and insured contractor to handle your property projects comes with many benefits. The risks involved in hiring an uninsured contractor are also very high, including being subject to lawsuit. Bonds are types of insurance policies that protect the owner. This means that when a contractor fails to complete a project as required, the bond provides compensation to the owner of the property.

Following are the reasons why it is important to hire a bonded, insured contractor.

1. A license manifests proven experience and examination requirements of a contractor. It also enables the homeowner to trace the contractor if something is terribly wrong. An unlicensed contractor is never permitted to work and he breaks the law is he works. He may not comply with the standard codes, including inspection requirements and permits requirements. Quality of the contractor’s workmanship is also compromised.

2. A bonded contractor has a building permit which is an assurance that the project being undertaken meets the building and safety codes. The contractor also ensures that the work is done properly.

3. The license board of contractors provides a free consultation and mediation services to homeowners and may take disciplinary actions against licensed contractors who violate the law. The contractors may be fined, censured or lose their license.

4. Homeowners also get access to a recovery fund which protects them in case the contractor dies, abandons the project, and loses the business or against any gross negligence of the contractor.

5. A licensed contractor is required to maintain a bond and have a workers compensation insurance to cover the homeowner from unnecessary liabilities such as personal or third party injury incurred as a result of improper workmanship, unsafe working procedures or innocent accidents.

6. A building permit is essential in adding value to your home upon resale. Some lenders usually insist on checking if home improvements were carried out with a license or permit.

7. Hiring an unlicensed contractor means you are giving up you right to make warranty claims. The board of Contractors will not help you make a warranty claim against an unlicensed contractor. You may be forced to go to a civil court. Still without a bond, chances are that the unlicensed contractor will not pay your damages.

To avoid the inconveniences of hiring an unlicensed contractor, it is advised that you get a licensed contractor who is in good standing. You can even consult the licensing board for a good contractor.