Homeowners are continually renovating their homes or starting new projects with the help of contractors. While many contractors claim to be licensed in the profession, just a small percentage of them are. It is always in the best interest of a homeowner to use a professional contractor. Despite this, many homeowners hire unlicensed contractors who cause more problems than they solve. Those who have been defrauded by an unauthorized contractor should seek legal help right away. Hiring an attorney to help you with this situation can help you recover your losses.
A contractor is someone who takes on the job of executing any type of construction work on your home or business. An unlicensed contractor is one who has failed to maintain a valid license with the Contractor’s State License Board for the duration of the construction project for which they were contracted.
Hiring an unlicensed contractor comes with a number of dangers. Personal culpability for injuries, shoddy workmanship, and inadequate insurance are just a few of the dangers.
If a person is hurt as a result of work done by an unlicensed contractor, the homeowner may be held personally accountable. Paying for such injuries might be prohibitively expensive.
The majority of unlicensed contractors do not have the necessary permissions. This raises the possibility that the work of the unauthorized contractor will go unnoticed by city officials. As a result, the quality of the work will typically fall short of industry requirements.
Many unlicensed contractors are not covered by insurance. Homeowners may incur out-of-pocket costs as a result of an uninsured, unlicensed contractor. Your homeowner’s insurance will not cover faulty work done by an uninsured, unlicensed contractor. Furthermore, product warranties may be terminated as a result of the uninsured, unlicensed contractor’s labor. Homeowners will incur significant out-of-pocket costs as a result of such circumstances.
If you can’t reach an agreement with your unlicensed contractor, you should seek legal advice right once. Obtaining a remedy through the legal system is frequently the best way to handle these issues. In most cases, the unlicensed contractor will be questioned about low quality work, resource mismanagement, and contract abandonment. These problems can only be solved with the help of a knowledgeable attorney.
What happens if someone working on your house gets hurt?
Your homes insurance should pay the legal fees if you are proven accountable for someone else’s injuries while working on your property in California. You may have medical payment coverage and/or liability insurance to protect yourself from litigation.
Most homes insurance policies will cover any and all injuries that occur on your property, including those sustained by workers and contractors. There is an exemption, though, if the accident was caused by your own carelessness or negligence.
If your homeowners insurance provider believes you contributed to the accident by failing to take reasonable care to ensure the safety of your property, it may refuse to cover you if you are sued for premises liability.
It might be difficult to determine whether or not you are legally liable for a worker injury on your premises. To sort through the details of your case, you might require the help of a Los Angeles premises liability lawyer. A lawyer can also assist you in determining your rights if you were harmed while working on someone else’s property.
What happens if I hire an unlicensed contractor in California?
The Contractors State License Board (CSLB) was founded in 1929 at the request of the construction industry to help enhance construction standards through state regulation and thereby safeguard customers.
By working in the underground economy, those who operate without a state-issued license hurt the public, ruin the construction industry’s reputation, and erode California’s financial base.
State contracting laws are enforced as part of the regulatory process. Each week, the CSLB’s Statewide Investigative Fraud Team (SWIFT) performs undercover stings and construction site sweeps around the state to see if contracting laws and regulations are being followed appropriately.
Those discovered contracting without a license will almost certainly have to go before a Superior Court judge to answer to misdemeanor charges that may result in up to six months in jail and/or a $5,000 fine, as well as a $200 to $15,000 administrative punishment. The sanctions will get more severe if illicit contracting continues. A second offense carries a required 90-day prison sentence as well as a fine of 20% of the contract price, or $5,000.
Anyone who illegally exploits another person’s contractor license or tries to deceive consumers into believing he or she is a professional contractor faces felony charges. Without an active state contractor license, anyone who contracts for work in a state or federal natural disaster region faces felony penalties. A person who is convicted of a felony may be sentenced to state prison.
Consumers should also be informed that they are not legally obligated to pay someone who is not a state-licensed professional, and they cannot be sued for non-payment.
If a licensed contractor is unable to resolve a dispute with a customer, the CSLB provides methods such as on-site negotiation, mediation, and arbitration. Licensed contractors and customers can use these services for free.
A state contractor license is a cost-effective and worthwhile investment in your professional career.
Does house insurance cover workmen?
Regrettably, this is improbable. Accidental damage resulting from alterations, repairs, maintenance, restoration, disassembly, or renovation is typically not covered by your buildings or possessions insurance.
- Check out reviews on sites like Checkatrade to check if they’ve ever had any issues.
One of our clients recently had decking installed, and this was a recent occurrence. The renovations had an impact on the house’s damp-proof course, and damp destroyed the kitchen units and the plaster came off the wall a few years later. Regrettably, the contractor had seemingly gone bankrupt and vanished.
Does homeowners insurance cover workers compensation in California?
The default rule is that all employees are covered by workers’ compensation. Domestic employees, on the other hand, are subject to some limits under California law, which apply when they work limited hours or are designated independent contractors. Independent contractors are not covered by workers’ compensation by their employers.
If a domestic worker is a “full-time” employee in California, they must be covered by workers’ compensation insurance.
A maid who comes every other week would most likely be regarded an independent contractor rather than a full-time employee.
If they get hurt at home, the homeowner’s insurance will most likely cover any injury-related liabilities.
To be considered full-time, a domestic worker does not have to work 40 hours a week.
A full-time domestic or residential employee is defined as follows under California law:
- If the worker works 20 hours or more per week inside the house, they are considered “full-time.”
- If the worker works outside the home, such as a gardener, they are considered full-time if they work at least 10 hours a week at home.
To be eligible for benefits, the domestic worker must have worked at least 52 hours in the 90 days prior to the job injury. During that time, they must also be paid at least $100. Even if the homeowner is unaware, many homeowner’s insurance policies include workers’ compensation coverage for domestic and residential workers.
Depending on the type and circumstances of the injury, a domestic worker who is not covered by workers’ compensation may nevertheless have a claim for premises liability.
If they can establish liability against the homeowners, reimbursement will almost certainly be covered by the homeowners’ insurance.
Can you sue an unlicensed contractor in California?
A person who hires an unlicensed contractor can sue them to recoup all of the money they were paid for the service they did. A contractor cannot sue a property owner for compensation for work performed under a contract unless he or she was licensed at all times during the work.
How much work can you do without a contractor license in California?
While unauthorized contracting in California is unquestionably dangerous, not all construction projects necessitate a contractor’s license. Contracting without a license, on the other hand, is limited in California. Without a license, an unlicensed contractor can only be employed for work that cost less than $500, including labor and supplies, so making a living will be difficult.
Is hiring an unlicensed contractor in California illegal?
- If you hire an unlicensed/uninsured contractor, you may be held liable for any injuries that occur on the construction site (even in your own home).
- Because unlicensed contractors are unable to obtain permits, their work is not inspected and may not comply with municipal regulations.
- An unlicensed contractor is not responsible for any damages to your house or for work that is not completed.
- Hiring an unlicensed contractor could lower the value of your home if you ever decide to sell it.
- Hiring an unlicensed contractor to do any service worth more than $500 is illegal.
- Unlicensed contractors may promote a “too good to be true” pricing, but they frequently use corners to achieve it.
Now that you’re aware of the risks of employing an unlicensed contractor, let’s look at each of the advantages that a licensed/insured painting contractor like TruLine Painting can offer.
Is Hiring an Unlicensed Contractor in California Illegal?
If the work performed exceeds $500, it is prohibited to use an unlicensed contractor in California. In the state of California, all contracting works worth more than $500 need the acting contractor to obtain a valid license from the Contractors State Licensing Board (CSLB)
The Contractor’s State License Law in California protects homeowners from unlicensed contractors. Any project with a combined labor and material cost of $500 or more is illegal for an unlicensed person to do contracting services on.
“Contractors caught performing work of $500 or more without a license are likely to appear before a Superior Court judge to answer to misdemeanor charges that can carry a potential sentence of six months in jail and/or a $5,000 fine, as well as administrative fines of $200 to $15,000,” according to Business and Professions Code section 7028. While these fines may not be passed on to you, they are still illegal and something to think about.
Workers Compensation
When engaging an unlicensed or uninsured contractor, the most important risk is liability. Workers compensation and liability insurance are not carried by unlicensed contractors.
If someone is hurt on the job, unlicensed contractors put their clients at risk.
“An unlicensed worker conducting services for which a license is required is not an independent contractor,” according to Insurance Code 2750.5 in California.
As a result, an unlicensed contractor, as well as any subcontractors recruited for the job, is legally regarded the homeowner’s employee.
The homeowner is then responsible for adhering to California OSHA safety rules (which, believe us, are extensive and something you don’t want to deal with). If an unlicensed contractor or subcontractor is hurt on the job, the contractor or subcontractor can sue the homeowner for breaking the law by hiring an unlicensed contractor and providing a dangerous workplace. Your homeowner’s insurance is unlikely to cover your medical expenditures, and coverage for the injured worker’s missed income might be financially disastrous to a homeowner.
Take this example
Mike Polaski, an unlicensed painting contractor, was hired by Dave Jorgensen of Tulsa, Oklahoma, to paint the exterior of his home in June of 2016. Mike was 12 feet up on a ladder in the middle of the job when it abruptly collapsed, leading him to fall to the ground and break his arm. Mike was technically an employee of Mr. Jergensen because he was unregistered and uninsured, therefore he could sue him for damages. Furthermore, because he was uninsured, there was no workers compensation policy, therefore Mike was allowed to sue Mr. Jergensen for lost pay and pain and suffering charges while he was recovering.
They’re Not Liable for ANY Damages
An unlicensed contractor will not be bonded or hold liability insurance. You may wind up having to pay twice to have someone come out and rectify their terrible job, canceling out any cost savings you may have realized by selecting an unlicensed contractor. Failure to be bonded also does not protect you if the contractor does not complete the project or does not pay subcontractors or suppliers.
Consider the following scenario: You want to save money on your house remodel, so you hire an uninsured painting firm in San Diego to remove the popcorn ceiling in your living room. He drops a large tool from his ladder onto your coffee table, causing a significant chip in the wood. Unfortunately, there would be no way to recover damages in this case. (If a contractor damages your home, liability insurance will protect you.)
Void Your Insurance Policy
All repairs and maintenance must be performed by a licensed contractor, according to most house insurance plans. You may lose coverage if you hire an unlicensed contractor and anything goes wrong, prompting you to file a claim.
Here’s an example
A recent rainstorm produced a leak within your home, causing damage to numerous inside walls that must now be repaired. Your policy’s deductible is $5,000, which you decide is too much, so you contact your next-door neighbor, Andy, who is an unlicensed contractor. Andy agrees to pay $1,000 to repair the walls, and everything appears to be in order. When you decide to sell your property six months later, an inspection reveals $750,000 in structural damage caused by the leak. You call your insurance company to file a claim, but they refuse it since the initial repairs were done by an unlicensed contractor, voiding your homeowner’s policy. You’re now responsible for $750,000 in repairs because you hired an unauthorized contractor.
It could diminish your home value should you ever decide to sell it
Because an unlicensed painting contractor is unable to secure the appropriate licenses for specific projects, it may affect your ability to sell your property in the future. You will be required to reveal this information to potential purchasers, which may lower the value of your home. If you fail to provide this information, you may be held accountable if the work is later discovered to be illegal. If the prospective buyer understands they will have to spend money on repairs to bring their house up to code, this will likely limit the dollar amount you receive on any offer.
But what about the cost savings you might ask?
Some unlicensed painting contractors may advertise costs that appear to be far lower than their competitors. This frequently comes at a cost “Not to mention all of the reasons outlined above, cutting corners is a bad idea. A warning indication is a “The price is “too good to be true.” This is also a result of unlicensed contractors failing to pay for the costs of necessary insurance and licensing, which is an investment that every reputable painting contractor should make.
So How Do You Protect Yourself?
Always ask for proof of a license and a Certificate of Insurance (COI) with Blanket AI (Additionally Insured) and workers compensation. You have the right to contact their insurance company and confirm that their policy is legitimate. You can also check their contractor’s license with the California Contractors State Licensing Board, which will show if they are currently licensed and in good standing. It will also go over the contractor’s workers compensation policy.
Check to see if they’re also linked. Bonding is also required to protect homeowners in the event that the contractor provides subpar work, fails to complete the project, or refuses to pay subcontractors and suppliers.
If a painting contractor or home painter tries to avoid the topic or refuses to cooperate, walk away. Failure to present proof of insurance and licensing implies that they are uninterested in you as a customer.
Looking for a Licensed Painting Contractor?
TruLine Painting is the place to go. We are licensed, insured, and bonded as a top San Diego painting contractor, giving you complete peace of mind. Both home and commercial painting are our specialties. We promise your complete satisfaction with all of our award-winning work. We back up our work with warranties, and we never leave a project until the customer is completely satisfied. We think that every customer is entitled to a 5-Star Customer Experience, as seen by our excellent Google, Yelp, and Angie’s List evaluations, and we urge you to check our previous reviews and project galleries.
Do I need to tell my home insurance I am working from home?
In summary, whether you are protected for business use and liability depends on what you do.
Certain circumstances, such as having business visits to your home, may modify the terms of your house insurance policy. Check to determine whether you require additional coverage.
If you’re doing office work from home during the pandemic, you don’t need to get a new coverage or alert your insurance carrier because it’s already covered.
Most office equipment will be covered up to the single-item limit, so double-check your policy.
Do I need to inform my insurance company if I am working from home?
Office workers who plan to continue working from home do not need to notify their insurer unless they:
- Your company manufactures, sells, or stores products at your house, especially if they are valuable or contain hazardous or combustible materials.
- You have business visits, such as face-to-face client meetings or services such as fitness instructor or hairdresser, who come to your home.
- You’ve made changes to your home to make it more business-friendly, such as converting an outbuilding into an office.
- If you’ve moved or plan to transfer your business operations into your house, talk to your service provider about it.
NOTE: If you are employed, your employer is normally responsible for insurance coverage for any business equipment, such as a laptop. But first, double-check.
If you work from home as a freelancer, your house insurance policy will not be affected.
What insurance do I need to run a business from home?
You may need to consider existing house insurance as well as specific business insurance, depending on the type of work you do:
- Your house insurance policy may not cover commercial equipment like computers.
- Public liability insurance and professional indemnity insurance if your job causes your customer financial loss, such as if you offered them bad advise, you’ll be covered.
Are you one of the growing number of workers who, due to furlough or redundancy, decide to establish a business from home? Consult your insurance provider.
What should I do now lockdown restrictions have been lifted?
If you continue to work from home, you must contact your home contents insurance company to ensure you are still insured.
According to GoCompare, house insurance prices have increased by less than 5% since the beginning of 2020. Insurers, on the other hand, are unlikely to be concerned about more people working from home if they know what kind of work they’re doing, according to the report.
“For insurers, there’s a plus: more homes being inhabited throughout the day can help minimize claims for hazards like burglary,” Rowlands says.
Review your coverage and call your insurer if you’ve treated yourself to some lockdown-inspired purchases, like as games consoles to distract your children.
Do I need to tell my insurer that I’m working from home?
Is it necessary to purchase new home insurance for home working if you work from home full-time due to COVID-19 measures?
You do not need to set up a new policy, so the answer is no. You won’t need to alert your insurance company if you work from home because it will be covered under your coverage.
Most insurers will cover your home office equipment as part of your home contents insurance policy, up to the single item maximum. You can verify your insurance policy or look up the policy wording online if you have any doubts.
Do I need to tell my insurance if I work from home?
If your boss has provided you with office equipment to use from home, it is normally covered by their business insurance, so you don’t need to add it to your policy. If you don’t tell them you work from home and then need to file a claim in the future, you may face penalties, so it’s always worth double-checking.