June 23, 2011 in Article by Jessica
The Dangers of Unlicensed and Uninsured Contractors
With a struggling economy, many are wanting to cut corners in all areas of spending. This is seen heavily in the home remodeling industry. Although less people seem to be remodeling their homes, there are still enough to keep the industry healthy. Yet, many of these homeowners are cutting costs by hiring contractors who are unlicensed, uninsured and even untrained.
But what does this mean for the homeowner? Well it includes numerous dangers and risks for the homeowners. First, if an uninsured contractor or another individual gets hurt while working on the home who is responsible for the injuries? The homeowner. If a window were to shatter or a slab of marble counter top were to crack who is responsible? The homeowner. This is comparable to driving with unlicensed drivers. They do not have the insurance to pay for any damage to either car or either driver.
Next, hiring or working as an unlicensed contractor is ILLEGAL in New Mexico as it is in most states. There are many people who have worked hard to get their licensing and have obtained the skills necessary to complete a quality job and those who have not taken the time to do so are breaking the law and leaving a trail of unhappy homeowners. What many people do not know is that an unlicensed contractor has no legal right to collect funds from the homeowner.
Therefore, even though hiring a contractor without a license or insurance seems light on the wallet, you will often end up paying more in the long run. These additional costs often include: court and lawyer fees when a contractor refuses to finish the job and leaves your home in pieces, damage to your home or personal belongings and future repair work for the damage done.
To keep yourself safe from these experiences always make sure the contractor has a license and check up on the license at: http://www.rld.state.nm.us/cid/. Here you can also report any unlicensed contractors. Additionally, when thinking to hire a contractor request that they have their insurance company send you a copy of their UPDATED insurance certificate.
~Jessica Speck
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