5 Reasons Why Homeowners Avoid Contractors Without Florida Construction Licenses

When filtering through prospective contractors, homeowners are quick to dismiss those without Florida construction licenses. Understandably so since unlicensed contractors can put homeowners at risk for costly and time-consuming projects. The consequences of hiring unlicensed contractors never outweigh the low upfront cost that comes with the lack of licensing fees, liability insurance, and worker’s compensation. Getting Florida contractor licenses is key to becoming a viable option for homeowners – just read on to learn more!

The Cost of Safety

When disaster strikes, unlicensed contractors cannot be held responsible for damages that occur as a result of their work. If they install a faulty pipe that leaks onto electrical wiring and sparks a fire, then the homeowners will have to foot the bill. Not only will they need to pay that amount, but their health could be compromised too. Homeowners seek out contractors with the proper licensing due to the financial and physical security that comes with their work.

Lowered Home Value

No home buyers purchase a property without inspecting every square foot. After all, an investment that massive needs to have a quality guarantee. During resale, the home inspection process is likely to turn up any unlicensed work that was done within its walls. Homeowners understand that they can’t sell a home without taking the time and money to amend any projects that were done by unlicensed contractors.

Harder to Get Home Loans…

Financial institutions are much less likely to award loans for homes that aren’t up to standards. When home buyers try to purchase a house that had unlicensed contracting work done, they will likely get hung out to dry by banks and lenders because they won’t take on the risks of such a liability. For this reason, work done by contractors without Florida contractor licenses is harmful to people that are both buying and selling a home.

…and Insurance Payments, Too

Since unlicensed contractors lack insurance coverage, any injuries that result during or after the project must be paid for by the homeowner. This includes injuries to the contractor, such as falling off a ladder or damaging a limb. If an insurance company finds out that the homeowner didn’t comply with the necessary industry standards that are otherwise satisfied by licensed contractors, then they won’t honor any claims pertaining to unlicensed work.

Lose Out on Time and Money

Unlicensed contractors can promise a cheaper cost up front due to their lack of insurance and licensing fees. However, have you ever heard that “buying cheap is expensive?” In this case, the low price point of unlicensed contract work can cost homeowners in the long run, whether they are patching up faulty work in the future or trying to sell their home. Furthermore, unlicensed contractors lack the expertise to plan for project complications. By investing in reliable contractors, homeowners are sure to save both time and money.

Homeowners do not like to take risks that they can’t afford to lose, especially when it comes to the property that keeps them safe and comfortable every day. When working as a contractor, you must know that your clients will do their due diligence and may look past your services if you lack contractor licensing. If you haven’t gotten your Florida construction licenses yet, don’t worry! The License Company makes the licensing process easy, understandable, and painless for all our clients. Stop missing out on money and let The License Company handle your licensing application today!