Is it necessary for handyman to be licensed and insured?

Question

Should I only hire a handyman who is licensed and insured?  What are the ramifications if the handyman is not licensed and insured?

Eliott Elias · Answer

I won't give any advice here

Licenced + insured = Expensive

Kevin Sobilo · Answer

@Maria Huether, the laws of your state may vary but in general most handymen are not insured or licensed. However, they probably should be.

There is very little work a handyman can do in your home what doesn't require a permit technically. Most times for small repairs people don't bother with a permit and get away with it. This is the gray area where handymen live. Doing small repairs and renovations without permits and cheaper than a licensed contractor or tradesman.

The licensed and insurance is to protect them and YOU! If the handyman damages your house while working on it or they get injured their insurance would cover that. Also, if the work was faulty, there would be recourse. However with no insurance, you don't have those protections.

So, I recommend considering those risks when choosing to use a handyman. Most people feel comfortable having a handyman do small repairs like replace a toilet because the chances of anything bad happening is low and its right in their wheelhouse skill wise. Would you feel comfortable having a handyman do a roof repair?!? They could fall and get hurt or a faulty repair could damage the home significantly.

Mike Dymski · Answer

Focus on getting good referrals from sources that you trust.  With local Facebook groups and the internet, that is getting easier.  If we look for licensed, insured, referred, cost effective, and ready when needed, we end up with zero options.

David M. · Answer

@Maria Huether

As you can see, it depends...  Rules and regulations vary by State, and many times by municipality.  So, check specifically what is required in your area if you want to follow the codes.

Again depending, you can remodel a house around me without pulling a permit.  Its legal to remodel a kitchen, bathroom, etc. as long as you don't relocated/change the plumbing and electrical and open up too much of the walls.  Licensure is only required for electricians and plumbers.  This adds a layer of required competency and liability.

You are really asking about "insurance."  Its basically when something goes "wrong."  Maybe somebody gets hurt.. maybe the job is performed poorly...  This is where having insurance is necessary to cover these issues/damages.

John Mocker · Answer

Maria,

I would not hire anyone who is not insured.  Any contractor who comes onto your property should be showing proof of insurance (General Liability & Workers Compensation at the minimum).  If they are working on a property with tenants or multiple owners (condo), you need to have their policy name you as an additional insured.  That way, when they damage the property of others, their company has to defend both you and them.   Ask your agent and Attorney about the workers comp. laws in your state.  Specifically, what happens if the contractor brings someone onto the job (employee and/or subcontractor) and they get injured.  Could you be brought into the suit.  If so, be sure they have workers comp.

Nate Sanow · Answer

In my area, in reality, few are licensed and insured. Those who are, are expensive and would be insulted to be called a handyman, they are the few true GC’s. A handyman, if that’s what you are really after, could just be a dude who knows some stuff, but definitely not everything. In my opinion, who cares if just cosmetics… e g tile, drywall or paint..but once you get into anything mechanical, either A. Find a licensed person or B. Just know you are saving money when the handyman installs that sink but your plumber might have to come back and fix it.

Aaron Porter · Answer

It is definitely a risk/reward scenario like everyone has said.  However, everyone's risk tolerance is different so you really should go with what you feel comfortable with.

Personally I use both licensed and unlicensed.  But I always make sure that the handyman is insured.  I don't like to and don't want to be forced to pay for someone else's mistakes, misfortunes, and liabilities.

Bruce Woodruff · Answer

Bingo! This is so easy to do right....

Bud Gaffney · Answer

@Maria Huether no.

Dan H. · Answer

I view it as a risk/reward trade off.  The reward is the cheaper price.  The risks are numerous.

The risks are numerous depending on the jurisdiction.  In CA work above a fairly low cost threshold requires a license.  If you do not follow this rule, you take chance of job getting shutdown.  If work sucks and they are not licensed you have few remedies.  If they do not have insurance, there are potential consequences if anyone gets hurt.

My view is I use handymen for jobs they are qualified to do and use contractors for jobs that warrant the use of a contractor.

What bothers me is when I use a licensed contractor, but due to rules that may have had a good intent, I cannot realistically permit the work (not without a much higher expense).  I have experienced this in multiple different circumstances. One such circumstance would have resulted in a single window replacement costing over $20k (as one example).

Is it necessary for handyman to be licensed and insured?

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