1. If you contract with an unlicensed person or company, then you are liable for any job injuries or accidents caused by the work.  For example, what if a worker is seriously injured?  What if the work being done causes a leak that floods your house?  What is the work at your house that causes damage to a gas or electric line?  Are you prepared to be sued?  Most often, a homeowner’s insurance will not cover these losses.  Because the contractor is not legal, you are liable.

2. Because uninsured contractors have no liability insurance, your remodeling investment is not protected from faulty materials or workmanship or from theft from the job site.  Be sure to be named on your contractors insurance as an “also insured”.

3. Unlicensed individuals leave you unprotected against a mechanic’s lien. If the contractor you hired to do the work doesn’t pay his suppliers, they can put a lien on your property.

4. A licensed contractor knows many trades, has been tested by the State of California and is bonded. Oftentimes, unlicensed contractors are unlicensed because they do not have the business skills and qualifications to become licensed.  You want a good business owner with whom to work.

5. Individuals not licensed do not have workers’ compensation insurance protection on their jobs, which means you do not have this additional protection.

6. The California State Contractor’s License Board (CSLB) will help investigate claims and disputes against licensed contractors at no cost to the homeowner.  CSLB maintains a database online where you can check the track record of your contractor.

7. Unlicensed individuals can not apply for permits on the job for which you hired them. A licensed contractor can use his or her experience and knowledge in obtaining required permits from the city, a task that requires more time and considerably more expertise than the homeowner might realize.

8. A licensed contractor is required by law to guarantee their work for a period of 10 years.  For some conditions, there is a lifetime guarantee.

9. Contracting is a complex business involving lien laws, municipal codes, safety regulations, and personal liability.  Work with a professional who understands these complex issues.

10. A Contractor’s License shows that the contractor wants to do things the right way– professionally and legally.