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Licenses, Bonds, Insurance…Oh My!

By | Pro | One Comment

“Are you licensed bonded and insured?”

In our years in the reno space, we’ve learned that some homeowners don’t actually know why they’re asking that question. So…we wanted to give you the run down.

In order to get a license, the contractor has to show proof of insurance. Bam! Now you can just ask if they have a license. However, if you’d like to use the extra oxygen, go ahead and ask for insurance [as insurance can lapse of course]. They have insurance. Yes! This means your house is covered? Not exactly. The insurance is to protect your tails from the workers getting hurt on your job, for example. Yes, this is true.

A bond is taken out as an “insurance” on your reno project. This means, if things go wrong, you can retrieve the money for the project at the bond value. So, next time you ask for a bond, this is why you want to ask.

This is obviously a gross overview, and regulations vary by state. If you have questions about these things, you can call your city buildings department, your insurance provider, or possibly an attorney if needed. I’m asked this question a lot, and it almost bugged me. But, over time I realized there was some lack of understanding here…Easy fix!

Remember, a license doesn’t guarantee quality work, and maybe going after the bond is worth a try before going to court…

Something harder to assess, but more meaningful, is accountability. Who’s going to finish the painstaking punch-out list at the end? That is who you want working for you!

Welcome to LeveledSMPro!