Maryland Home Improvement Contractor (HIC) Bonds
Maryland Home Improvement Contractor Bond Information
The Maryland Home Improve Commission (MHIC) requires that home improvement contractors licensed to operate in the state furnish a surety bond to the Commission to ensure compliance with licensing guidelines and state laws. The MHIC defines home improvement work as alteration, remodeling, repair or replacement of a building or part of a building used as a residence, along with work done on individual condominium units.
What Does a Home Improvement Contractor Bond Protect Against?
The MHIC home improvement contractor surety bond ensures that the principal complies with Annotated Code of Maryland, Business Regulation Article, Title 8. The aggregate of liability of the surety company under this bond for all payments from the Maryland Home Improvement Guaranty Fund due to violations of the Maryland Home Improvement Law by the principal is limited to $20,000. Renewals covered by the bond will establish a new surety bonding term. The surety company’s maximum liability is $20,000 per bonding period.
Getting Your Maryland Business License or Registration
The Maryland Division of Occupational & Professional Licensing will expedite the replacement of any damaged licenses. Businesses or individuals that experience a loss of the actual paper license can call 410-230-6231 for more details.
For renovations performed in pre -1978 housing for compensation applicants may need to have lead abatement accreditation and provide homeowners with lead information. Contact the EPA and the Maryland Department of the Environment.
A contractor who holds a license under the Maryland Home Improvement Law is not required to hold a construction license issued by the Clerk of the Circuit Court.
New home builders must register with the Consumer Protection Division of the Office of the Attorney General.
Contractors must display their home improvement license number on all of their home improvement contracts, trucks, and advertisements.
Home improvement contracts cannot require the payment of more than one third of the total contract price at the time of signing the contract.
Arbitration clauses in contracts must be clearly disclosed and initialed by both parties.
Licensees must notify the Executive Director of the Commission within 10 days of a change of address, trade name or ownership of the business by certified mail, return receipt requested.
Checks sent to the Commission with applications go directly to a bank due to auditing requirements. A cancelled check is not proof of licensure. Only the hard copy of the actual license is proof of licensure.