Without a licensed contractor, you are legally considered the “Employer” of the crew working on your property. As such, you are responsible for following all the rules of CAL/OSHA and the State of California and be financially liable for any injuries or inadequate workmanship.
2. Should you wish to sell that property later and it cannot pass inspection, you have no recourse but to repair the poor workmanship at your own expense.
3. Should your insurance find out you hired an unlicensed contractor, they can, and most likely will, deny financial responsibility for any repairs resulting from the unlicensed contractor.
4. Should the repairs or injury liability be too great, your insurance could drop you.
5. If your mortgage agency becomes aware that you no longer have insurance, you could be forced to buy insurance at a much higher cost or risk the forced sale of your property if you cannot pay the balance due on your mortgage.
6. Should an unlicensed contractor or their employees get injured on your property, you can be sued personally. See items 3, 4, and 5.
7. If you hire an unlicensed contractor, you are rescinding your homeowner’s rights to State help in a dispute. The state of California only represents homeowners who hire licensed contractors.
8. Should an injury occur, the State Contractor’s Board can fine you for not hiring a licensed contractor. See items 3, 4, and 5.
Hiring a licensed contractor in the State of California does not ensure that job mishaps do not occur. However, it helps protect you, your home and your rights when you hire a licensed contractor. Things like insurance, proper training of employees, home and employee safety all cost money. Think before you “save money” by hiring an unlicensed contractor.