Important Reasons to Choose Licensed, Bonded and Insured Contractors in AZ

October 8, 2019

Functional and aesthetic home improvements are great for property value, but only as long as they’re completed by professionals. It’s important for a contractor doing home renovations in Phoenix, AZ to be licensed, bonded and insured. We’ll also discuss the top reasons to hire someone with all three of these important forms of protection.

The difference between a contractor’s license, insurance and bond

When renovating your home to make room for a custom kitchen (for example), the process normally requires removing walls and adding new walls, electricity and plumbing. Because of this, you should hire a licensed, bonded and insured general contractor. This offers better assurance that you’re working with an experienced, reputable professional who has you covered should something go wrong on the job site. Here’s what each of these types of protection entails:

  • Contractor’s license: Not only does a general contractor need a license to legally provide their services, they may also need to be licensed in a specific trade. Many states require separate licenses for particular trades, including plumbing, electrical and HVAC technicians. While this is not the law in every state, the absence of a trade license could make it difficult for a contractor to get properly insured and bonded.
  • Contractor’s insurance: The two most common types of contractor’s insurance are liability insurance and workers compensation. Liability covers situations like when crewmembers cause damage to your property, while worker’s comp covers loss of monetary compensation to injured workers after on-the-job injuries.
  • Contractor’s bond: This protects you if the contractor is unable to complete the job they were hired to do, doesn’t pay for permits or fails to handle other financial obligations, like paying for supplies or covering property damage caused by workers.

Important reasons to hire a contractor who is licensed, bonded and insured

Without these three forms of homeowner protection, you’re putting yourself at risk financially and assuming too much unnecessary liability. Here’s why hiring a licensed and fully covered contractor is a must:

  • Good communication and planning: Not all contractors are as organized as you would expect them to be, which is why you need an experienced and licensed general contractor. He or she will make sure your home renovation project is done systematically from beginning to end. They are more likely to plan out the process carefully and remain in constant communication with you.
  • Will meet all local and state requirements: Home renovations of all sizes—but big ones in particular—require you to comply with city and government ordinances and acquire the proper permits. A licensed contractor deals with all this for you! Then, when the final inspection comes around, you can breathe easier knowing your project was compliant with safety requirements and other regulations.
  • Takes responsibility for damages: You should hire a licensed and bonded contractor as a form of insurance. This means you won’t be financially responsible for damage that occurs during renovation.

From bathroom upgrades to kitchen remodels to other home renovations in Phoenix, AZ, the professionals at Renovations by Design are ready to be there for you. Call us today for more information!

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