Home Builder Developer - Interior Renovation and Design

Philadelphia, PA (PRWEB) August 13, 2013

Homeowners confused about when and if a contractor needs to hold a license, or if it really matters, are not alone. Each state has its own set of licensing rules and regulations.

Fortunately, Pennsylvania enacted the Home Improvement Consumer Protection Act in an effort to thwart dishonest contractors and their fraudulent actions. In effect as of July 1, 2009, the Act requires all contractors who perform $5,000 or more in home improvements annually to register with the Attorney Generals office. Registered contractors must carry at least $50,000 of personal injury liability coverage and $50,000 of property damage coverage.

Why is this so important to residents in the Philadelphia tri-state region? There are several important reasons homeowners should hire a licensed contractor with sufficient insurance.

Why Licensing Matters

Using an unlicensed contractor can cost homeowners in a number of ways. Unlicensed contractors have not had to submit to any examination or review of their knowledge by a licensing board, therefore it is impossible to determine the quality of their work. In addition, licensing or registration protects the homeowner by helping ensure that contractors meet the minimum insurance requirements.

If a project requires a building permit but the contractor failed to obtain one due to being unlicensed, building inspectors can stop the work until they are satisfied a licensed contractor has obtained the proper permits. In addition, homeowners who use unlicensed contractors may find little recourse if a problem develops after the work is completed.

To avoid these potential hazards, Pennsylvania residents should check with the state licensing board before hiring any contractors to determine if their license is in good standing.

Why Insurance is Important

Liability insurance covers property damage and injuries caused by the contractor's work. When interviewing a prospective company, ask to see a current Certificate of Insurance then call the insurance company to verify that the policy is current and the coverage is sufficient for the project.

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