As a result of the series of storms that are hitting our state, insurance carriers are overwhelmed with calls for damage to property. As a result of the damages they are seeing an increase in the number of unlicensed contractors preying on the public. We feel it is important that we share the consequences of using an unlicensed contractor on any project over $750.
If a property owner hires an unlicensed contractor, it can affect their insurance coverage in several ways. Firstly, the property or homeowners insurance policy may not cover any damages or injuries that occur as a result of the unlicensed contractor’s work. Insurance companies often exclude coverage for work performed by unlicensed contractors because of the higher risk of subpar workmanship and safety hazards.
Secondly, if an unlicensed contractor is injured while working on your property, the property owner may be held liable for the contractor’s medical bills and lost wages. The property or homeowner’s insurance policy may not cover these expenses, and the property owner may be forced to pay out of pocket.
Finally, if the unlicensed contractor causes damage to neighboring properties or public property, the property owner may be held responsible for the damages.
It is important for property owners to check with the contractors state license board to verify they are licensed and verify they have General Liability and Workers Compensation insurance to ensure that they have adequate coverage for the project and that you, the owner, are properly protected.
When it comes to home improvement projects, it can be tempting to hire an unlicensed contractor to save some money. However, in California, hiring an unlicensed contractor is not only risky but can also be illegal.
In California, a contractor’s license is required for any job that exceeds $500 in value, including labor and materials. The Contractors State License Board (CSLB) regulates licensed contractors in California and requires that they meet certain education, experience, and testing requirements. These requirements ensure that licensed contractors are knowledgeable about building codes, safety regulations, and other critical aspects of construction.
On the other hand, unlicensed contractors do not meet these standards and can pose significant risks to homeowners. They may lack the necessary skills and knowledge to complete the job correctly, which could result in subpar work, structural issues, or safety hazards. In some cases, unlicensed contractors may even take the property owner’s money and disappear without completing the work.
Hiring an unlicensed contractor can also have legal consequences. California law prohibits unlicensed contractors from advertising their services or performing any construction work that requires a license. Property owners who hire unlicensed contractors could face fines, legal fees, and even be held liable for injuries sustained by workers on their property.
To protect yourself and your property, it is essential to hire a licensed contractor for any construction work that exceeds $500 in value. You can verify a contractor’s license by visiting the CSLB website or by calling their toll-free number (800) 321-2752.
The website also provides information on complaints against contractors and any disciplinary actions taken against them
In conclusion, hiring an unlicensed contractor in California is not only risky but can also be illegal. Property owners should always hire licensed contractors for any construction work that exceeds $500 in value to ensure that the work is done correctly, safely, and legally. Protect your property and your finances by doing your due diligence and hiring a licensed contractor.
