Last updated: July 27, 2026
If the home is dangerous now: Leave the unsafe area and call 911 for fire, a strong gas smell, sparking wires, collapse risk, threats, or another immediate emergency. Call the utility emergency line for a suspected gas or electrical hazard. Temporary work may be needed, but do not let urgency push you into a blank contract, full payment, or an unverified contractor.
Bottom line: Before a contractor starts, verify the exact legal business name and license for the work, confirm insurance with the insurer, ask the local building department about permits, and put every promise in a written contract. A license, insurance certificate, bond, and permit each do a different job. None of them alone guarantees good work.
Home repair rules are local. A state may license general contractors or only certain trades. A city or county may add registration, permit, or inspection rules.
This guide gives you a safe process for private repairs, insurance claims, disaster work, weatherization, nonprofit repairs, and government-funded rehabilitation.
Quick contractor check before you sign
Use this table before you pay a deposit, authorize demolition, or let work begin.
| Item | What it tells you | Where to verify it |
|---|---|---|
| Contractor or trade license | Whether the person or company may legally contract for that kind of work in your area. | State licensing board, county licensing office, city contractor office, or building department. |
| Business registration | That a business name is registered. It may not prove construction skill or authority to perform the repair. | Secretary of state, city, county, or tax office. |
| General liability insurance | May respond to certain covered property damage or injury claims caused by the contractor’s operations. | Certificate of insurance, followed by a call to the listed insurer or agent. |
| Workers’ compensation | May cover employees who are injured at work, subject to state law and the policy. | Insurer, state workers’ compensation agency, or licensing board. |
| Surety bond | May provide limited recovery for specific violations or nonperformance, depending on the bond and state law. | Licensing board and surety company. |
| Permit | Shows that the local government authorized regulated work and identified required inspections. | City or county building department or official permit portal. |
| Final inspection or permit closure | Shows whether required inspections passed and the permit was closed. | Building department or official online permit record. |
Use independent contact information. Do not verify a license, insurance policy, program, or permit only through a phone number or link the contractor gave you. Find the official agency or insurer yourself.
How to verify the right contractor license
Start by asking for the contractor’s legal business name, license number, business address, phone number, and the name of the person signing the contract. Then search the official government record yourself.
There is no single national contractor license database. Use the state consumer office directory or the local government directory to find the correct state, county, or city office. Your building department can also tell you which license is required for the planned work.
Official systems use different names. California has a state Contractors State License Board. Florida’s Department of Business and Professional Regulation has an official contractor license search. Maryland has a separate home improvement commission. In other places, general contractors may be regulated locally while electrical, plumbing, heating, cooling, roofing, well, septic, or lead work is regulated by a state trade board.
Check more than the word active.
A search result marked active is only the start. Confirm all of these:
- The legal name matches the estimate and contract.
- The license covers your type of work.
- The license is active for the full job period.
- The business address and phone number make sense.
- The person signing has authority to bind the licensed company.
- Any required bond or workers’ compensation record is current.
- You reviewed public discipline, complaints, or citations when the board provides them.
- Do not accept a business license, tax receipt, trade-group badge, online profile, or insurance card as a substitute for a required contractor license.
A registration may only record business and contact information. It may not show that the contractor passed an exam or proved experience. Ask the agency what the status means.
Phone script for the licensing office
“I am checking a contractor before I sign. The legal business name is [name], and the license number is [number]. Is the license active? Does it cover [roofing, electrical, plumbing, HVAC, structural, or other work]? Does the person signing the contract have authority to use this license? Are there public discipline records or limits I should review?”
Search by license number and company name. A name mismatch may show that the estimate came from a different business.
Insurance and bonds are not the same protection
Ask for a current certificate of insurance before work starts. The certificate should show the insured business name, insurer, policy type, policy dates, agent or producer, and policy number. The name should match the company on your contract.
The National Association of Insurance Commissioners advises homeowners to request proof of liability and workers’ compensation insurance and to call the insurer to verify coverage. Its contractor scam guidance explains these checks. You can also find your regulator through the state insurance department directory.
| Coverage or bond | What it may address | Important limit |
|---|---|---|
| Commercial general liability | Certain covered property damage or bodily injury caused by the contractor’s work. | It may exclude poor workmanship, pollution, mold, roofing, excavation, lead, or other risks. Coverage depends on the policy and facts. |
| Workers’ compensation | Medical and wage benefits for covered employees hurt on the job. | Requirements and exemptions are set mainly by state law. A worker called a subcontractor may still be treated differently by the state. |
| Commercial auto | Certain claims involving covered business vehicles. | A personal auto policy may not cover commercial use. |
| Contractor license bond | Limited claims allowed under state licensing law. | The bond amount may be shared across claims and may be far below your project cost. |
| Performance or payment bond | May protect completion of a specific job or payment of labor and suppliers. | It must be issued for the project, and claim terms, deadlines, and limits apply. |
A certificate is evidence of coverage when issued. It is not the policy and does not guarantee that every loss is covered. Ask the insurer or agent to confirm active coverage for residential work like yours.
Private-company workers’ compensation is overseen at the state level. The U.S. Department of Labor provides a state workers’ compensation directory when you need the correct state office.
Phone script for the insurer or agent
“I received a certificate of insurance for [contractor legal name]. Can you confirm that the policy is active today, that the insured name matches this contractor, and that it applies to residential [type of work]? Is there an exclusion or coverage issue I should ask the contractor about before work begins?”
Stop and verify if the certificate is expired, altered, missing the legal business name, issued to another company, or sent from an address that does not match the insurer or agent.
Permits and inspections: call before work starts
A permit is local approval for regulated work. Rules vary by repair and address. Historic districts, flood zones, wildfire areas, septic systems, wells, and manufactured homes can add reviews.
Call the city or county building department for the property address. Describe the work and ask which permits, plans, trade licenses, and inspections are required. Do not rely on a contractor’s claim that permits are never needed.
| Repair | Permit is commonly required | Ask about |
|---|---|---|
| Roof replacement or structural roof repair | Often | Roof permit, decking, wind rules, ventilation, final inspection. |
| Electrical panel, service, rewiring, or new circuits | Often | Electrical permit, utility coordination, rough and final inspections. |
| Plumbing, sewer, gas line, or water heater | Often | Plumbing or gas permit, pressure tests, trench or connection inspection. |
| Furnace, air conditioner, or heat pump | Often | Mechanical permit, electrical work, refrigerant rules, final inspection. |
| Foundation, wall removal, deck, porch, or ramp | Often | Building and zoning review, plans, footing and framing inspections. |
| Paint, flooring, cabinets, or minor trim | Often not | Lead-safe rules, electrical or plumbing changes hidden inside the job. |
For a fuller explanation, use the HomeRepairGrants.org guide to permits for home repairs.
Who should pull the permit?
For work performed under a hired contractor’s license, the contractor commonly pulls the permit. Local rules control. If the contractor asks you to pull an owner-builder or homeowner permit, stop and call the building department. You may be accepting responsibility for code compliance, inspections, workers, or subcontractors.
Before work starts, get the permit number and confirm it in the official system. Ask which stages need inspection. Keep copies of the permit, approved plans, inspection results, correction notices, and final approval.
Phone script for the building department
“I own the home at [address]. I plan to repair [describe work]. Does this need a building, electrical, plumbing, mechanical, zoning, or other permit? What license must the contractor have? Who should pull the permit? Which inspections are required, and how can I confirm the permit is closed?”
Do not make final payment merely because the work looks finished. Confirm that required final inspections passed and the permit is closed, unless a written repair program or escrow process controls payment differently.
Older homes and special work need extra checks
Extra rules may apply when work disturbs lead paint, asbestos, mold, sewage, fire residue, or flood contamination.
For many paid renovation, repair, or painting jobs that disturb painted surfaces in pre-1978 housing, the U.S. Environmental Protection Agency’s Renovation, Repair and Painting Rule requires firm certification, trained renovators, and lead-safe work practices. EPA recommends that homeowners use a lead-safe certified contractor. Some states and tribes run their own authorized lead programs.
Window replacement and painted-surface demolition can trigger lead rules even on a small job. Ask who the certified renovator is and how dust will be contained and cleaned.
Do not cut, sand, drill, or remove suspected asbestos. Ask the state environmental agency which inspection, abatement, disposal, or permit rules apply. Use similar care with sewage and disaster debris.
Written estimates, contracts, and payment rules
The Federal Trade Commission recommends multiple written estimates and warns against choosing a contractor only because the price is lowest. Its home improvement scam guide says the estimate should describe the work, materials, completion date, and price.
Use a contractor bid worksheet to compare the same scope across bids. A low bid may leave out permits, disposal, damaged decking, code upgrades, finish work, or warranty terms.
Put these terms in the contract.
- Legal business name, address, phone number, and license number.
- Job address and detailed scope of work.
- Materials, brands, model numbers, quantities, and allowances.
- Total price and a payment schedule tied to completed stages.
- Start date, expected completion date, and delay terms.
- Who pulls and pays for permits.
- Who schedules inspections and fixes failed work.
- Names or roles of subcontractors.
- Cleanup, debris removal, and property protection.
- Written warranty and who handles warranty calls.
- Change-order process with price and time changes in writing.
- Cancellation notice when federal or state law requires it.
- Lien-release process before progress and final payments.
The FTC’s Cooling-Off Rule can give a three-business-day cancellation right for certain sales made at your home or a temporary location. Exceptions apply, and state rights may differ. Do not assume every repair contract can be canceled. Read the notice and seek help quickly.
Common mistakes that create expensive problems
- Signing a blank or partly blank contract.
- Paying the full price before work begins.
- Paying by cash, wire transfer, gift card, or cryptocurrency.
- Letting demolition start before the permit is issued.
- Accepting verbal upgrades or text-message change orders without a price.
- Making final payment before inspections, cleanup, warranties, and lien documents are complete.
- Letting a contractor arrange financing without comparing the cash price and full loan terms.
Ask about mechanic’s liens.
State law may allow an unpaid contractor, subcontractor, laborer, or supplier to claim a lien against the property. A lien problem can arise even when the homeowner paid the general contractor but the general contractor did not pay others. California’s official explanation of mechanic’s lien risks is one example; your own state’s rules and deadlines control.
For a large job, ask local legal aid or the contractor board how notices, joint checks, lien releases, and final payment work in your state. Do not sign a release you do not understand.
If financing is part of the offer, compare the safer-payment questions in the guide to home repair loans and scams. A contractor loan, home equity loan, deferred loan, forgivable loan, property-tax assessment, and grant are not the same.
When a grant, loan, weatherization service, or insurance claim is involved
Do not hire first and ask for reimbursement later without written approval. Programs may inspect, set the work scope, approve contractors and bids, require permits, and pay only after inspection.
Ask what type of help is offered: grant, deferred loan, forgivable loan, low-interest loan, rebate, weatherization, volunteer repair, insurance benefit, or referral. No monthly payment can still mean a lien or later repayment. Review repair liens and recapture before signing.
The Department of Energy explains that the Weatherization Assistance Program is run through state and local providers. Eligible households apply to the local provider, and the provider performs an energy audit, sets the work scope, arranges crews or contractors, and inspects completed work. This is a weatherization service, not cash handed to the homeowner for any repair.
For general repair help, USAGov’s current home repair assistance page explains that eligibility may depend on income, age, property type, and location. Local funds and waitlists can change. Use the HomeRepairGrants.org guide on applying for repair assistance and gather the documents repair programs request before intake.
Phone script for a repair program or insurer
“I need [repair], and I have not hired anyone yet. Do you inspect first? Must I use an approved, licensed, insured, bonded, or lead-safe contractor? How many bids are required? Who pulls permits? Who pays the contractor? Will work started before written approval be ineligible?”
If a contractor claims a government program already approved your home, verify the program directly. Use the guide to verify a repair program. Do not give the contractor your Social Security number, bank login, deed, insurance check, or signed loan papers just because a flyer uses an official-looking seal.
What to do if the permit, contractor, or job goes wrong
Document the problem before it changes. Take safe photos and video. Save contracts, estimates, change orders, permits, inspection notices, insurance records, payments, financing papers, messages, advertisements, and worker names.
If the permit is denied or an inspection fails
Ask the building department for the exact reason in writing. Common issues include missing plans, wrong license, unapproved materials, zoning limits, floodplain or historic review, work that differs from the plans, or work started before approval. Require the contractor to submit corrections through the official process. Do not accept “the inspector said it was fine” without a passed record.
If a repair program rejects the contractor
Ask whether you may submit another contractor, use an approved list, obtain new bids, or appeal. The program may reject a contractor for an inactive license, missing insurance, high bid, conflict of interest, lead-rule problem, debarment, incomplete paperwork, or failure to follow procurement rules.
If the contractor stopped work or took money
Send a clear written notice describing the problem and requested solution. Do not threaten or enter an unsafe confrontation. Contact the licensing board, building department, state consumer office, insurer, surety company, lender, and repair program as each issue requires.
USAGov explains how to complain about a company. Suspected fraud can be reported through the FTC at FTC fraud report or by calling 1-877-382-4357. The detailed HomeRepairGrants.org guide on contractor payment problems gives a step-by-step evidence list.
If the dispute involves a lien, foreclosure risk, deed, loan, elder exploitation, a large loss, or court papers, seek legal help promptly. The Legal Services Corporation’s legal aid finder can connect eligible people to civil legal services. A HUD-approved housing counselor can also help with housing debt and financing questions; call 1-800-569-4287 or use the HUD counseling directory.
Major warning signs: An uninvited contractor says the damage must be fixed today, refuses license verification, asks you to pull an owner-builder permit, wants the full price up front, demands cash or a wire, offers to “handle” your insurance check, asks you to sign blank financing papers, or says permits and inspections are unnecessary. Older homeowners and disaster survivors should also review the guide to repair scams targeting seniors.
A simple action plan before work begins
- Write the repair scope. Describe the problem, affected rooms or systems, and what result you need.
- Call the building department. Ask about permits, trade licenses, plans, zoning, and inspections.
- Collect contractor details. Get the legal name, license number, signer name, address, phone, and references.
- Verify the license yourself. Confirm status, classification, identity, discipline, bond, and workers’ compensation records.
- Verify insurance. Review the certificate and call the insurer or agent.
- Compare written estimates. Make sure each bid covers the same materials, permits, cleanup, and code work.
- Check the program or insurer. Get written approval before hiring when assistance or a claim is involved.
- Review the contract. Remove blanks, add every promise, and understand cancellation, financing, lien, and change-order terms.
- Track the permit. Keep the permit number and inspection schedule.
- Hold final payment. Confirm completion, passed inspections, permit closure, cleanup, warranty documents, and required lien releases.
Keep one folder for every record. A clear paper trail helps with inspection, payment, warranty, insurance, program, or legal problems.
Frequently asked questions
Is a business license the same as a contractor license?
No. A business license or registration may only show that a business registered with a city, county, state, or tax office. A contractor or trade license may be required to perform specific repair work. Ask the building department or licensing board which credential applies.
Does an active license guarantee good work?
No. An active license shows that the contractor currently meets the licensing agency’s requirements. It does not guarantee quality, honesty, insurance coverage, permit approval, or successful completion. Check the scope, insurance, complaints, references, contract, permits, and inspections too.
Should the homeowner or contractor pull the permit?
Local rules control, but a licensed contractor commonly pulls the permit for work performed under that license. If a contractor asks you to use an owner-builder permit, call the building department before agreeing because you may accept added responsibility.
What insurance should a home repair contractor have?
General liability and workers’ compensation are the main policies homeowners commonly ask about. Commercial auto or special coverage may matter for some jobs. Requirements, exemptions, exclusions, and limits vary, so verify the policy with the insurer and the legal requirement with the state or local agency.
Is a contractor bond the same as insurance?
No. A bond is a limited promise by a surety under specific claim rules. It may protect the public, licensing agency, project owner, workers, or suppliers depending on the bond. It does not replace liability insurance, workers’ compensation, a clear contract, or permit inspections.
Can a repair program pay a contractor I already hired?
Sometimes, but many programs will not pay for work started before written approval. They may require an inspection, approved scope, licensed contractor, bids, environmental review, permits, and final inspection. Ask the program before signing, paying, or starting work.
About This Guide
How we researched this page: We checked official federal, state, local, tribal, utility, and trusted nonprofit sources linked in this article. We reviewed program names, service areas, eligibility rules, application routes, contact details, and whether each option is a grant, loan, rebate, service, or referral.
Our role: HomeRepairGrants.org is an independent information website. We do not run these programs, accept applications, choose recipients, or guarantee funding or approval.
Local changes: Funding, waitlists, service areas, income limits, and application periods can change. Confirm current details with the organization that runs the program before you apply, sign papers, pay money, or start repair work.
Corrections: See something outdated or incorrect? Email info@homerepairgrants.org and include the page URL and a reliable source when possible.
Disclaimer: This guide provides general information. It is not legal, financial, tax, insurance, medical, disability-rights, contractor, or government-agency advice.
Last verified: July 27, 2026 | Next review: October 27, 2026