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Work by Unlicensed Contractors

In homeowner's insurance, Insurance News on May 22, 2013 at 1:32

Work by unlicensed contractors has been on the upswing in Southwest Florida for several years, part of a Great Recession-inspired shift that has pushed licensed firms to other parts of the country.

Those working with contractors who have lost their jobs and are unlicensed are doing work on the side. Officials acknowledge that some homeowners willingly work with unlicensed contractors to save money, since those workers charge less by avoiding liability insurance, workers’ compensation, permits and other overhead.

Issues arise in questions of insurance coverage. Defective workmanship is not covered by most homeowner’s insurance policies, and homeowners may be liable for damages suffered by the unlicensed contractors.

Homeowners must be wary. According to Alan Anderson, executive vice president of the Home Builders Association of Manatee-Sarasota, “You’re trying to save a few dollars. But in the majority of cases, you are not getting the highest quality and safest job. And when they are gone, you have no recourse.”

Read more here.

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