Many things can go wrong during a construction project. From injuries and poor workmanship to the destruction of property. A licensed contractor and their insurance carriers are the primary payers in the event something goes awry on the job.
If the contractor hired to complete the job is not licensed and insured, the homeowner is responsible for any issues. A standard homeowner’s insurance or landlord liability insurance isn't going to cover these events. Most of these policies exempt damage caused by the knowing use of illegal or unlicensed contractors.
5 Benefits to Hiring a Licensed Contractor
Before a contractor can take on any remodeling projects legally, he or she must have a license. Several regulations and rules are put in place to obtain a contractor license. These requirements vary by state and city. Once a contractor is licensed, the state's licensing board will ensure that the regulations are followed or else the license can be revoked.
Licensed contractors can perform a variety of work. Much time, money, and stress are saved when a licensed contractor is hired for the project versus an unlicensed contractor.
1. Training and Experience
Licensed contractors have completed testing and training to ensure clients receive quality service and excellent workmanship. To obtain a license, some states require contractors to demonstrate various levels of competency through training, on-the-job experience, and standardized testing.
Licenses sometimes must be renewed depending on the state’s regulations. Reputable licensed contractors will include their license number in signage and business cards. If a contractor refuses to disclose their license number, consider that as a red flag. Due diligence is important for homeowners. There are state licensing websites to verify if a contractor is licensed to do work in that state.
2. Insurance
In addition to having licenses, good contractors have insurance that benefits the homeowner and protects themselves. If the property was damaged during the remodeling process, the contractor’s insurance would help offset any damages. Insurance coverage protects the homeowner from financial consequences if something goes wrong. Choose a contractor who has general liability insurance along with workers' compensation insurance.
The contractor has the overall responsibility for legal compliance, safety, quality of workmanship, and just about everything else that happens on the job site. Some tasks are handed off to subcontractors which adds to the liability. States generally won't even issue a contractor's license if the minimum level of insurance isn't in place.
3. Established Relationships
Access to specialized information and resources is gained when a licensed contractor is hired. Licensed contractors have established relationships with very reliable sub-contractors for specific services such as plumbing or electrical needs. By hiring a contractor with these relationships, the remodeling project should be completed on time and high standards are maintained throughout the job.
4. Knowledgeable about Legal Issues
Licensed contractors must adhere to building codes and regulations. A reputable contractor will make sure all city ordinances and safety requirements are followed. Inspections should go smoothly knowing that the contractor hired for the job complied with all regulations. This will also help sell a home. Potential buyers can ask to see the necessary permits for verification. If the contractor was not licensed, the buyer won’t receive anything.
5. Peace of Mind
With a licensed contractor, homeowners can rest assured knowing the future addition of the home is in good hands. A licensed contractor will ensure the remodeling project is completed on time, within budget, and according to the customer’s specifications. The contractors at Finnteriors will take responsibility for any issues that arise.
About Finnteriors
For over 20 years, Finnteriors has provided quality general contracting services for the St. Louis area. Specialties include kitchen, bathroom, and basement remodeling. Their team of contractors can make a homeowner's biggest investment more valuable over time. Finnteriors has many national and international accreditations to show a high level of commitment to learning and implementing best practices.