Risks of Hiring Unlicensed Contractors

Risks of Hiring Unlicensed Contractors

Hiring The Right HOA ContractorThe construction market is now flooded with numerous contractors promising to deliver the best homes and properties. Before settling on a particular contractor, you ought to weigh several factors regarding them including their reputation, cost, and even their track record. However, before going that far, it is essential first to consider whether they are licensed or not. Even though their craft may be the same, the later pose a higher risk in the long run.

Below are the risks associated with unauthorized contractors:

No basic Protection

A license in any field of work comes with the fulfillment of some fundamental aspects deemed necessary in that field. It is a reliable proof that a contractor has met the requirements and can be trusted to complete the job. It is also easier to research on a licensed contractor since their information can be accessed through your state’s licensing board. Contrary to the unlicensed contractor, they can be held liable in a court of law if you present a case against them. Their license can also be withdrawn if so many complaints are filed against them.

Injury and Third-Party Protection

Sometimes accidents are inevitable during construction and they can cause injury to workers. When you hire an unlicensed contractor, you are the one to be held responsible in the event of such occurrences. Unlicensed contractors do not have a workers compensation insurance. Your homeowner insurance cover may help cover the workers claim, but you risk paying higher rates in future or even being rejected. You are also held responsible for any damage to a third party such as a passerby, the neighboring house or any other property during the construction.

Protecting Property Values

If you intend to sell the home later then hiring a licensed contractor is a great way of conserving the value of your property. Licensed contractors obtain all the required paperwork, unlike their counterparts. They also do their construction according to the required standards which should customarily be disclosed to the buyer during the sell. Unpermitted work only reduces the value of the property. Licensed contractors also have liability insurance and can do any necessary corrections if need be unlike their opponents.

If you are in need of hiring licensed contractors, and need assistance to make sure you are doing it right, contact our office and work with an experienced professional. 

National Property Management Group is Santa Clarita’s premier property management group with over 30 years of experience. We offer innovative solutions for those in the financial, administrative, and HOA business. Ready to experience what we can do for you and your business? Give us a call today and let us cater to your unique business needs. 


National Property Management Group
25115 Avenue Stanford A300
Valencia, CA 91355
661-295-5966

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