Last updated: May 21, 2026
Your roof is leaking, the furnace is unsafe, or a storm crew is knocking on the door. Before you sign, pay, or let anyone cut into your home, you need to know whether the contractor is allowed to do the work, insured if something goes wrong, and willing to pull the right permits.
Start here before you hire a repair contractor
This guide is for homeowners who need repair work and want to avoid an unlicensed contractor, fake permit, bad loan, or failed inspection. It is especially important for urgent, expensive, disaster-related, grant-funded, insurance-funded, or weatherization work.
The Federal Trade Commission says homeowners should consider only contractors who are licensed and insured, confirm licenses with state or county government, ask for proof of insurance, get multiple estimates, and read the contract before signing. You can review the FTC’s home improvement scam guidance before you hire.
Do these five things before work starts:
- Ask for the contractor’s legal business name, license number, address, and phone number.
- Look up the license yourself on the official state, county, or city site.
- Ask for insurance certificates, then call the insurance agent or carrier to confirm coverage.
- Call the local building department and ask whether the job needs a permit or inspection.
- Get a written estimate and contract before paying anything.
| What to check | Why it matters | Where to confirm it |
|---|---|---|
| License or registration | Shows whether the person or company is allowed to do that type of work in your area. | State contractor board, trade board, county licensing office, or city consumer office. |
| Insurance | May protect against property damage, injuries, and worker claims if something goes wrong. | Insurance certificate plus a call to the listed agent or carrier. |
| Permit | Helps confirm the work is reviewed and inspected under local code. | City or county building department, permit portal, or inspection office. |
| Complaints | Shows patterns such as abandoned jobs, unpaid subcontractors, or poor work. | Licensing board, state consumer office, attorney general, court records, and trusted reviews. |
| Contract and payment schedule | Controls scope, timing, changes, permits, warranties, and when money is due. | Your written contract, repair program rules, insurance claim rules, or legal aid if needed. |
If the repair is unsafe right now
Do not let a contractor rush you into signing because the home feels unsafe. A real emergency changes the order of steps, but it does not make verification useless.
Call emergency help first if you smell gas, see sparking wires, have an active fire, see a wall or ceiling sagging, have sewage backing into living space, or cannot safely stay in the home. Call 911, the utility shutoff line, your local building department, or your local emergency management office as the situation requires.
After people are safe, take photos, save receipts, and ask the building department or insurance company what temporary work is allowed. Emergency tarping, water shutoff, board-up, or temporary heat may be allowed before a full repair contract. Full replacement work often still needs a licensed contractor, permit, inspection, or program approval.
If a disaster caused the damage, be extra careful. The FTC warns that disaster scammers may claim they do not need a license, demand full payment up front, ask you to sign over an insurance check, push a blank contract, or steer you to a lender. Read the FTC’s disaster scam warning after a storm, flood, fire, tornado, or wildfire.
How to check a contractor license without guessing
Contractor licensing is local. Some states license general contractors at the state level. Some license only certain trades, such as electrical, plumbing, HVAC, roofing, mold, or lead work. Some cities or counties require a local home improvement license even when the state does not. A business license, tax receipt, or online listing is not the same thing as permission to do your repair.
Ask the contractor for the license number, exact business name, and name of the person who will sign the contract. Then search the official site yourself. Do not rely on a screenshot, badge, or link sent by the contractor. California’s official license check lets consumers search by license number or business name. Florida’s official license search covers many regulated professions. Maryland’s home improvement commission licenses and regulates home improvement contractors and salespersons.
Your state may use different words. A licensed contractor may have met exam, experience, bonding, insurance, or financial requirements. A registered contractor may only have filed contact information. The National Association of Insurance Commissioners explains this difference in its contractor scams guidance.
Phone script: contractor license board
Hello, I am a homeowner checking a contractor before I sign. The company name is [name], and the license number they gave me is [number]. Is this license active, does it cover [roofing/electrical/HVAC/plumbing/general repair], are there complaints or disciplinary actions I should know about, and does this person have authority to contract directly with homeowners?
Tip: Search several ways. Try the license number, business name, owner’s name, and phone number. If the name on the estimate does not match the name on the license, ask the licensing board before signing.
Insurance to ask for before work begins
Insurance is not a promise that every loss will be covered, but hiring an uninsured contractor can leave you with fewer options if a worker is hurt, a pipe bursts, a roof is opened during rain, or a subcontractor damages your home.
Ask for a current certificate of insurance. The contractor should not be offended by this request. The certificate should show the business name, policy dates, coverage type, insurance company, agent, and policy number. The NAIC recommends getting proof of liability insurance and workers’ compensation insurance and calling the insurance company to verify coverage.
| Insurance or bond | What it may help with | What to ask |
|---|---|---|
| General liability | Property damage or injuries caused by the contractor’s operations, depending on the policy. | Is the policy active, and does it cover residential repair work like mine? |
| Workers’ compensation | Worker injuries, where required and covered under state law. | Are employees and helpers covered, or has the business filed an exemption? |
| Commercial auto | Vehicle-related damage or injury involving the contractor’s work vehicles. | Does the business use covered vehicles for this job? |
| Surety bond | A limited source of recovery if the contractor violates covered rules or fails to perform, depending on state law and bond terms. | Is a bond required in this state or for this license, and how would a homeowner make a claim? |
Phone script: insurance agent
Hello, I am a homeowner. I received a certificate of insurance from [contractor]. Can you confirm the policy is active today, the insured business name matches the contractor, the work type is covered, and whether there are any exclusions I should ask about before residential repair work starts?
Do not accept a certificate that is expired, edited by hand, missing the business name, or from a different company. If the contractor says, “My helper is responsible for his own insurance,” call the licensing board or local building department. That may be a warning sign.
Permits and inspections: do not skip this step
A building permit is local government approval to do certain construction, alteration, demolition, replacement, or repair work. The City of Long Beach explains that permits help make sure work meets local zoning and building rules and protects current and future occupants. Its permit page lists common permit types such as building, electrical, plumbing, mechanical, and combination permits. Your city or county may use different names, but the purpose is similar. Check your local building department or review a city example such as building permits.
Many small cosmetic jobs do not need a permit, but structural work, roof replacement, window replacement, electrical changes, plumbing changes, sewer work, gas work, HVAC replacement, decks, additions, and major accessibility work often do. Historic districts, flood zones, coastal zones, wildfire areas, and homeowner association rules can add extra steps.
| Repair type | Permit often needed? | Who to call first |
|---|---|---|
| Roof replacement or major roof repair | Often yes | Building department or roofing permit desk |
| Electrical panel, rewiring, outlets, or service upgrade | Often yes | Electrical inspector or building department |
| Furnace, AC, water heater, or gas appliance | Often yes | Mechanical, plumbing, or gas permit desk |
| Foundation, framing, deck, porch, ramp, or wall removal | Often yes | Building department and zoning office |
| Paint, carpet, cabinets, minor trim | Often no, but local rules vary | Building department if unsure |
Be careful with owner-builder permits. If a contractor asks you to pull the permit in your own name, stop and call the building department. In some areas, pulling an owner-builder permit can make you responsible for code problems, inspections, safety, or worker issues. It can also be a sign that the contractor is not licensed for the work.
Phone script: building department
Hello, I own the home at [address]. I am planning [type of repair]. Does this need a permit or inspection? Does the contractor need a specific license? Should the contractor pull the permit, or can a homeowner pull it? What records should I ask to see before work starts?
Ask for the permit number before work starts. Keep a copy of the permit card or online permit record. Ask when inspections are needed. Do not make final payment until the final inspection is passed or the building department confirms the permit is closed, unless a program or written agreement gives a different safe process.
Older homes, lead paint, asbestos, and special hazards
If your home was built before 1978, lead paint rules may apply when paint is disturbed. EPA says renovation, repair, and painting work can create dangerous lead dust in older homes and recommends an EPA or state lead-safe certified contractor for covered work. Use EPA’s lead-safe contractor information before sanding, cutting, replacing windows, scraping paint, or doing demolition.
Asbestos can also be present in older insulation, floor tiles, siding, roofing, pipe wrap, textured coatings, and other materials. The Consumer Product Safety Commission says asbestos material should be handled only by professionals trained to do so safely in many situations. Review CPSC’s asbestos guide and your state environmental agency before disturbing suspect materials.
Mold, sewage, fire damage, and flood cleanup may also require special training, containment, disposal, or permits. If a contractor says, “No one checks this,” call your local health department, building department, or environmental agency before letting work continue.
Written estimates and contracts protect you
A written estimate should describe the work, materials, cost, start date, completion date, payment schedule, permit responsibility, cleanup, warranties, and what happens if hidden damage is found. The FTC says written estimates should include the work description, materials, completion date, and price, and it warns against choosing a contractor just because the bid is lowest.
The contract should include the contractor’s name, address, phone number, license number, estimated start and completion dates, promises about scope and cost, and all blank spaces filled in. If you sign at your home or away from the seller’s regular place of business, FTC guidance says the contract should include a written statement of your right to cancel within three business days. State rules may add more contract requirements.
Common mistakes that cause trouble later:
- Signing a blank or partly blank contract.
- Paying the full amount before work starts.
- Letting work start before the permit is issued.
- Not checking whether subcontractors and suppliers will be paid.
- Letting a contractor arrange a loan before you read the terms.
- Approving a change order by text without price and scope details.
- Making final payment before inspection, cleanup, and lien releases.
Down payment limits vary by state. Some states limit how much a contractor can ask for up front, while others rely more on contract law and consumer protection rules. Contact your consumer protection office or contractor board before paying a large deposit.
Ask about mechanics liens before you pay
A mechanics lien is a claim against your property by a contractor, subcontractor, laborer, or material supplier who says they were not paid. The California Contractors State License Board’s mechanics lien guide explains why homeowners need to understand this risk. Lien rules are state-specific, so ask your contractor board, local legal aid office, or real estate attorney how to protect yourself.
For larger jobs, ask whether payments can be made by joint check to the contractor and supplier, whether the contractor will provide conditional lien releases with progress payments, and whether final lien releases will be provided before final payment clears. Do not sign lien papers you do not understand.
When grants, loans, insurance, or nonprofits are involved
If you are using home repair assistance, do not hire first and ask for reimbursement later unless the program clearly says that is allowed. Many repair programs must inspect the home, approve the repair scope, approve the contractor, and confirm the cost before work begins.
Government and nonprofit repair programs may use licensed contractors, approved contractor lists, sealed bids, lead-safe requirements, wage rules, income documents, owner-occupancy rules, or local inspections. The U.S. Department of Energy says the Weatherization Assistance Program is administered at the state and local level, and most applicants contact a local provider after finding their state administrator. Read DOE’s weatherization application steps if your repair is energy-related.
For general repair help, USAGov warns that the federal government does not offer free money to individuals for home repairs and points people to official repair and loan paths. Start with repair programs and confirm the local administrator before you spend money.
If you need help sorting papers, a HUD-approved housing counselor may help you understand housing options, credit issues, and foreclosure or mortgage risk. You can search through the CFPB’s housing counselor tool or HUD’s counseling directory.
For local repair referrals, call 211. Local 211 systems can connect people to community services, and some areas have specific home repair intake lines. Nonprofits may also help, but rules vary by affiliate and funding. Habitat for Humanity describes home preservation work that may use volunteers, donated materials, and affordable payments depending on the local affiliate. Rebuilding Together describes itself as a nonprofit focused on safe housing through local affiliates and volunteers.
Phone script: repair program
Hello, I need [repair type] and I am checking your rules before hiring anyone. Do you require pre-approval, licensed contractors, multiple bids, permits, lead-safe work, or your own inspection? If I already paid a contractor, can that be covered, or must I wait?
HomeRepairGrants.org has general pages on application documents and state repair paths such as the Florida repair guide, Texas repair guide, and Pennsylvania repair guide. Use those only as starting points, then check the official local program before signing a contract.
Financing cautions before you sign loan papers
Some contractor problems are really financing problems. A contractor may offer a monthly payment that sounds small, then later you learn about a lien, high fees, a home equity loan, a tax assessment, or terms you did not understand.
Be careful with contractor-arranged financing. The FTC warns that some home improvement loan scams start with a contractor who comes to your door, offers work, arranges financing through a lender, and then asks you to sign papers quickly or while blank.
PACE financing is a special caution. CFPB explains that a PACE loan is used for home improvements and is repaid through an increase in your property tax payment. CFPB also issued a final rule on residential PACE transactions in 2024. Before using this kind of financing, read CFPB’s PACE loan explanation and ask your mortgage servicer, tax office, and a housing counselor how it could affect selling, refinancing, escrow, or tax delinquency risk.
Do not sign loan papers you have not read. Ask for the full annual percentage rate, total finance charge, monthly payment, repayment term, fees, lien or tax-assessment details, cancellation rights, and what happens if the contractor does not finish the work.
What to do if the job is delayed, denied, or going badly
If the permit is denied, ask the building department for the reason in writing. It may be missing plans, wrong contractor license, zoning limits, floodplain rules, historic review, structural details, or work that already started without approval. Do not let the contractor “work around” a permit denial without written direction from the building department.
If a repair assistance program rejects the contractor, ask whether you may choose another contractor, use an approved list, submit new bids, or appeal the decision. Programs may reject a bid because the contractor lacks licensing, lacks insurance, is too expensive, missed paperwork, or does not meet program procurement rules.
If work has started and something is wrong, document it. Take photos, save messages, keep permits, save proof of payments, and write down dates. Send the contractor a clear written notice of the problem and a reasonable deadline to respond. If the issue is dangerous, call the building inspector, utility, health department, or emergency service instead of waiting.
For complaints, start with the licensing board or state consumer office. USAGov maintains a list of state consumer offices and a guide on where to report scams. Your state attorney general, local building department, insurance department, or contractor board may also have complaint forms.
Some states have recovery or guaranty funds, but they have strict rules. Connecticut says its Home Improvement Guaranty Fund may help eligible homeowners satisfy an unpaid judgment or court-confirmed arbitration decision, with eligibility criteria and a possible payment up to $25,000. Maryland says its guaranty fund applies only to work done by licensed contractors and caps recovery by rule. These examples show why using a licensed contractor matters, but your state’s rules may be different. Check your own state’s guaranty fund or contractor board before assuming recovery is available.
If the dispute involves a lien, loan, foreclosure threat, elder exploitation, insurance claim, or a large loss, contact legal help quickly. The Legal Services Corporation helps people find civil legal aid, and LawHelp provides legal rights resources and referrals in every state and territory.
Simple contractor checklist to print or copy
- Contractor legal name: __________________________
- License or registration number: __________________________
- License verified on official site: Yes / No
- Trade covered by license: __________________________
- Insurance certificate received: Yes / No
- Insurance verified by phone: Yes / No
- Permit required: Yes / No / Not sure
- Permit number: __________________________
- Written estimate received: Yes / No
- Written contract complete, no blanks: Yes / No
- Payment schedule tied to progress: Yes / No
- Final inspection required before final payment: Yes / No
- Lien releases needed: Yes / No / Not sure
- Program or insurance approval needed before work starts: Yes / No
FAQ
Is a business license the same as a contractor license?
No. A business license may only show that a business registered with a city, county, or tax office. A contractor license or trade license may show permission to perform certain repair work. The terms vary by state, so check the official licensing board before signing.
Should I let the contractor pull the permit?
In many hired repair jobs, the contractor should handle the permit for the work they are performing. If the contractor asks you to pull an owner-builder permit, call the building department first and ask what responsibility you would accept by doing that.
What if my contractor says insurance is not needed?
Pause before hiring. Ask your state contractor board or local permit office whether insurance is required for that type of work. Even where not required, a contractor without liability or workers’ compensation coverage may create risk for you.
Can a grant or repair program pay a contractor I already hired?
Sometimes, but many programs do not reimburse work that started before approval. Ask the program before signing or paying. Some programs require their own inspection, contractor approval, permits, and bids.
What if I already paid and the contractor disappeared?
Gather the contract, payment proof, messages, photos, and license information. File a complaint with the contractor board or state consumer office. If the loss is large, a lien is filed, or your home is at risk, contact legal aid or an attorney quickly.
About This Guide
This repair help guide uses official federal, state, local, and high-trust nonprofit/community sources mentioned in the article, including consumer protection agencies, licensing boards, permit offices, housing counseling resources, legal aid resources, and nonprofit repair organizations.
HomeRepairGrants.org is not a government agency, does not guarantee eligibility, and is not legal, financial, tax, medical, insurance, disability-rights, or government-agency advice.
Corrections: Email info@homerepairgrants.org with corrections.
Next review: August 17, 2026