The Hidden Costs of Cutting Corners: Why Hiring Licensed and Insured Handymen in San Diego Matters

Saving a few bucks can be tempting when tackling those never-ending home repairs and projects. Hiring an unlicensed and uninsured handyman might seem like a cost-effective solution, but it can quickly turn into a nightmare, leaving you with hefty expenses, legal battles, and even damage to your property. This blog post explores why prioritizing licensed and insured professionals is crucial for protecting your home and your wallet.

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The Risks of Hiring Unlicensed and Uninsured Handymen

You find someone online offering a great rate, but they're not licensed or insured. What could go wrong? Plenty, as these real-world examples illustrate:

• The Injury: A homeowner hires an unlicensed and uninsured handyman to update their powder room. While installing baseboards, the handyman cuts his hand on a mitre saw blade. The handyman does not have insurance and is looking at a large medical bill. Because he can’t afford the medical bill, he decides to file a claim against the homeowner’s insurance under the premises liability, and because there was no contract, the homeowner is in for a costly and time-consuming battle.

• The Electrical Fire Hazard: A family hires an unlicensed handyman to upgrade their electrical panel. The handyman made several critical errors, creating a significant fire hazard. While thankfully a fire was averted, the homeowner has to spend a substantial amount of money to have a licensed electrician correct the dangerous wiring. This could have been avoided had they hired a qualified professional from the start.

• The Shoddy Deck Collapse: A new homeowner hires an unlicensed handyman to build a new deck. The deck, constructed without proper permits or adherence to building codes, collapses during a housewarming party and several people are injured. Because the handyman was uninsured, the homeowners are personally liable for the medical expenses and potential lawsuits.

• The Unfinished Project and Vanishing Act: A homeowner pays an unlicensed handyman a significant deposit to start a bathroom renovation. The handyman begins the work but never finishes, leaving the homeowner with a half-completed bathroom and will not respond to any attempts to return the deposit. Because there was no contract and the handyman was unlicensed, the homeowner has little recourse to recover their money.

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Why Licensing and Insurance Matter

• Proof of Expertise: Licensing demonstrates that a handyman has met certain qualifications and has the necessary skills and knowledge to perform the work competently. It often involves passing exams and demonstrating critical experience.

• Protection Against Accidents: Insurance protects you, the homeowner, in case of accidents or property damage. If a licensed and insured handyman damages your property or gets injured on the job, their insurance will cover the costs. Without insurance, you could be held liable.

• Accountability and Recourse: Licensed handymen are held accountable for their work. If something goes wrong, you have legal recourse to seek compensation. Dealing with an unlicensed individual often leaves you with no options for resolution.

• Adherence to Building Codes: Licensed professionals are familiar with local building codes and regulations. This ensures that the work is done safely and meets required standards, preventing future problems and potential fines.

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Don't Gamble with Your Home

While the upfront cost of hiring a licensed and insured handyman might be slightly higher, it's a worthwhile investment that can save you significant money and headaches in the long run. Don't gamble with your home and your safety. Always verify licenses and insurance before hiring anyone to work on your property. Protect yourself and your investment by choosing qualified professionals.

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Tips for Hiring a Handyman:

• Ask for proof of license and insurance. Don't just take their word for it.

• Check online reviews.

• Don't automatically go with the lowest price. The lowest price is often a result of not being licensed or insured. See below for just a few of the costs associated with keeping all parties protected and why licensed and insured handymen and contractors are more expensive:
  
  • Workers compensation policies are generally 7% of payroll.
  • General Liability policies are generally 5% of gross sales.
  • A $25,000 bond costs roughly $300/year.
  • Keeping licenses current costs hundreds each year.

• Get a written contract that outlines the scope of work, payment terms, and timeline.

• If the handyman you hire sends an employee or subcontractor to do the work, ensure that they are covered under the insurance policies. A lot of contractors or handymen may carry insurance for themselves, however, if the policy doesn’t cover employees or subcontractors who don’t have their own insurance, the liability can potentially be transferred to the homeowner.

It’s also important to note that hiring an individual from apps or platforms such as Thumbtack or HomeAdvisor does not guarantee that they are licensed or insured, as these are not required to be on the platform. “Vetted” on these platforms simply means that the service provider passed a basic background check; i.e. they do not have a serious criminal record. Before hiring a service provider from one of these platforms, it is highly recommended you ask for proof of license and insurance yourself.

Remember, when it comes to these platforms, the handyman or service provider is the real customer, not you. You’re the product. Handymen and service providers pay for leads and homeowner information, and these platforms are incentivized to onboard a high volume of them, regardless of their qualifications. At the end of the day, their business model is to sell leads and lots of them, not to protect homeowners.

By taking these precautions, you can ensure that your home maintenance, repairs, and projects are done correctly, safely, and without any unexpected (and expensive) surprises.

At HomeFree, we are licensed, bonded, and carry General Liability and Workers Compensation Insurance policies that cover all employees to ensure our people and customers are fully protected. In addition, all of our employees are salaried and receive medical benefits and equity in the company, ensuring that we act as owners in everything that we do.

Explore our handyman services in San Diego and start tackling your to-do list with a licensed and fully insured home improvement partner, who knows how to deliver the absolute best handyman services while giving you the protection and peace of mind that you deserve.