Homeowner TipsJune 18, 2026· 7 min read
How to Hire a Licensed Contractor (Without Getting Burned)
The exact checklist to verify a contractor's license, insurance, and reputation before they pick up a hammer on your house.
By QOTA Team
Why "licensed" actually matters
A license is the state's promise that the contractor passed a trade exam, carries liability insurance, and is on record with a regulatory board you can complain to. Unlicensed work on permitted scopes can void your homeowners insurance, kill your resale value, and leave you with no legal recourse when something goes wrong.
The 6-step hire-a-contractor checklist
- Verify the license number live on your state's licensing board website. Take the number off the contractor's quote — not their truck.
- Confirm general liability insurance of at least $1M. Ask for a Certificate of Insurance (COI) sent directly from the insurer, not a screenshot.
- Confirm workers' comp if they have employees. Without it, an injured worker can sue you.
- Read 12 months of reviews, not just the top three. Look for how the contractor responds to negative feedback.
- Get three written, itemized quotes. A one-line "$22,000" quote is a red flag.
- Pay through escrow, not cash, and never more than a small deposit up front.
Questions to ask before signing
- Who is the on-site project manager and what's their direct phone?
- What's the change-order process and pricing?
- What's the warranty on labor vs. materials?
- What happens if the timeline slips?
- Can I see two recent jobs in person or by video?
Red flags to walk away from
- Door-to-door solicitation after a storm
- Cash-only "discount"
- Pressure to sign today
- No physical business address
- Asking for more than 30% deposit
Use QOTA to skip the guesswork
Every QOTA pro is license-verified, insurance-verified, and rated by real homeowners. Posting your project is free.