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Weekly Tip 04/21/2020

April 21, 2020


Here are two reasons why it is important to hire a licensed contractor:

1. Basic Protection
Obtaining a license in a specific field demonstrates that the person has a minimal level of competence in that field, for everything ranging from safely installing irrigation systems to current building codes. Having a license does not necessarily indicate they are the best at what they do, but that they do have a basic understanding. Legally, a licensed contractor is required to participate in arbitration hearings if any disputes arise.

New Mexico Construction Industries Division keeps and publishes complaints against contractors. This is important because it allows potential clients to research a contractor and read about other consumer experiences. In addition, if a contractor receives enough complaints, the contractor could possibly lose their license.

2. Injury/Liability Protection
What if the landscaper you hired has an employee on the job at your home who was injured on your property but the landscaper did not carry worker’s compensation insurance? Since that employee was injured on your property, he could file a claim on your homeowner’s insurance policy to help cover the cost to pay that worker’s claim.

After you meet your deductible, the claim could result in an increase of your insurance rates. Lengthy lawsuits, emotional strife, and an incomplete landscaping job would certainly outweigh hiring an unlicensed contractor.

This wraps up our series on "What To Look For in A Contractor". Reach out if you have any other questions!

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