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Risks to consider when hiring unlicensed contractors for repairs

| Apr 19, 2018 | Blog |

Many Arizona homeowners rely on contractors to make renovations and repairs to their properties. They expect the individuals they hire to perform exemplary work that meets and exceeds their expectations. They may think they are saving money by hiring unlicensed professionals; however, there is a hidden price tag and some consequences that come with hiring construction workers who lack proper credentials. Many homeowners never consider what steps they can take to resolve any issues that arise when their contractors damage their home and deliver subpar work. 

If you are getting ready to hire someone to work on your home, exercise due diligence during selection. There are reasons why licensed professionals cost more. Take some time to consider the following risks of using unlicensed contractors

1. You assume liability for most problems 

If the person or crew you hire to work on your home is unlicensed, you could end up on the hook for repair issues that occur. Normally, major damage that occurs from having a qualified professional or company make repairs to your home are compensable under the contractor’s liability insurance and your homeowners insurance policy. However, if you hire an unqualified contractor who causes construction defects such as knocking out a wall and damaging a pipe in the process, your homeowners insurance is not going to cover the damage because you did not use a licensed contractor. Also, if work is necessary to correct any issues an unqualified contractor causes, it is very likely you will absorb the costs. 

2. It could cause problems if you decide to sell 

Before contractors start construction projects, they must apply for the right permits. Many unlicensed professionals take shortcuts and do not get permits before completing their projects. This might not seem like a big deal, but it can be, especially if the work is not up to code. If you decide to sell your property in the future, you must provide full disclosure. This includes information on repairs and renovations completed by unlicensed contractors. Using an unlicensed contractor can lower your property’s resale value and cause you to encounter additional challenges while trying to sell your home. 

Unlicensed contractors and companies may seem like a great deal, but you should keep in mind that you get what you pay for. Try to avoid using unqualified professionals for your renovations and repair projects, or you could end up paying more than you save. You could also find yourself dealing with litigation.

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