“Are you licensed and insured?”
It’s probably one of the most common things homeowners are told to ask before hiring a contractor. But here in Pennsylvania, the answer is a little more complicated than you might think.
First, Pennsylvania does not have a statewide contractor’s license for most residential contractors. What we have is a Home Improvement Contractor registration, or HIC number. Most contractors performing home improvements are required to register with the state and carry a minimum amount of liability insurance.
And here’s the part many homeowners don’t realize; getting an HIC number does not mean your contractor passed a construction exam or demonstrated a certain level of experience.
Some municipalities have additional requirements of their own. The City of Easton, for example, has contractor licensing requirements, and certain trades, particularly plumbing and electrical, may have additional local licensing or certification requirements.
So, what should you ask for?
Start with the contractor’s HIC number and verify that the registration is current. But don’t stop there.
Ask for a current Certificate of Insurance (COI) showing their general liability coverage. If the contractor has employees, workers’ compensation insurance matters too. In fact, when a building permit is required, Pennsylvania requires contractors to provide the municipality with proof of workers’ compensation coverage, or an affidavit stating they don’t employ anyone and aren’t required to carry it.
Reminder: not every renovation requires a permit. That means there isn’t necessarily a municipality checking those credentials for you.
The takeaway?
“Licensed and insured” sounds reassuring, but ask what it actually means. A reputable contractor shouldn’t hesitate to provide their registration and proof of insurance.
Your home is a pretty big investment, typically the largest investment we’ll make in our lives. It’s okay to check who’s working on it.
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