Hiring someone to work on your home is a big decision. Whether you need a new roof, updated gutters, or exterior improvements, you want to know that the person doing the work is qualified and trustworthy. A low price or a friendly sales pitch may sound appealing, but neither proves that a contractor can complete the job safely.
Before signing a contract, take time to check the contractor’s license and insurance. These simple steps can help protect your home, your money, and your family if something goes wrong during the project.
Michigan has specific licensing requirements for residential construction and certain home improvement trades. Understanding these rules can help you make a better hiring decision.
1. Why Checking a Contractor’s License Matters
A contractor’s license helps show that the person or business meets the state’s requirements for the work they are qualified to perform.
In Michigan, residential builders and maintenance and alteration contractors are regulated by the Department of Licensing and Regulatory Affairs (LARA). A license is important for many residential construction and improvement projects.
However, not every license covers every type of work.
For example, a maintenance and alteration contractor may hold qualifications for specific trades, such as roofing, siding, or gutters. The approved trades are listed on the license.
Before hiring an exterior renovation contractor, make sure the license covers the work you want completed.
A contractor who is qualified to install gutters may not automatically be qualified to perform roofing work under the same license.
2. Ask the Contractor for Their License Information
The first step is simple: ask the contractor for their license number and the name under which the license is registered.
A professional contractor should be willing to provide this information.
Ask for:
- The contractor’s full legal name.
- Their business name.
- Their Michigan license number.
- Their license type.
- The specific trades covered by the license.
Do not rely only on a business card, website, or advertisement. These materials may contain company information, but they do not confirm that a license is active or valid.
You should also ask to see the contractor’s license card. Michigan’s LARA homeowner guidance advises consumers to request the contractor’s license information and verify it through the state.
3. Verify the License Through Michigan LARA
Once you have the license number, check it through Michigan’s official licensing system.
The state provides an online database where homeowners can search for licensed contractors.
Follow these steps:
- Visit the Michigan LARA license search portal.
- Search using the contractor’s name or license number.
- Find the matching license record.
- Review the license type and status.
- Check the expiration date.
- Confirm that the approved trade matches your project.
Pay close attention to the name on the record. It should match the individual or business responsible for your contract.
If the contractor gives you a license number that belongs to another person or company, ask for an explanation before moving forward.
What Should You Look for in the License Record?
A few details deserve extra attention:
Active status: Make sure the license is currently active.
Correct license type: Confirm that the contractor holds the appropriate residential builder or maintenance and alteration license.
Approved trade: Check that the license includes the work you need.
Expiration date: Make sure the license will remain valid during the project.
If you cannot find the license or something does not match, contact LARA before hiring the contractor.
4. Understand Which License Is Needed for Roofing, Siding, and Gutters
Different exterior projects may require different trade qualifications.
Michigan’s maintenance and alteration contractor licenses include several approved trades. These include roofing, siding, and gutters.
This is especially important when you are hiring someone for more than one type of exterior improvement.
Roofing Projects
Roofing work involves more than placing new shingles. It may include removing old materials, preparing the roof deck, installing underlayment, and fitting flashing around roof openings.
When searching for a roofing contractor near me in Fenton MI, check that the contractor’s license includes roofing if they are operating under a maintenance and alteration license.
Also ask about previous roofing projects, material choices, workmanship standards, and written warranties.
Gutter Installation and Replacement
Gutters help direct rainwater away from your home’s walls and foundation. Poor installation can lead to drainage problems, water damage, and soil erosion.
If you are looking for a gutter contractor near me in Fenton MI, verify that the contractor has the proper gutter trade qualification when required.
Ask how the contractor plans to handle gutter sizing, downspout placement, slope, and water drainage.
Siding and Other Exterior Work
Siding protects your home from wind, rain, and moisture. Improper installation can leave gaps that allow water to enter behind the panels.
If your project includes siding along with roofing or gutters, check that the contractor has the appropriate qualifications for each trade.
Do not assume one license automatically covers every exterior service.
5. Ask for Proof of General Liability Insurance
A valid contractor license is important, but it is only one part of the hiring process. You should also confirm that the contractor carries insurance.
General liability insurance helps protect against certain third-party claims involving property damage or bodily injury connected to business operations.
For example, imagine a contractor accidentally damages your siding while working on the roof. Depending on the policy and circumstances, general liability insurance may help cover the resulting claim.
Before hiring, ask for a current Certificate of Insurance (COI).
Check the following information:
- The contractor’s legal business name.
- The insurance company’s name.
- The policy number.
- The coverage dates.
- The general liability coverage details.
- Any relevant exclusions or limitations.
Do not simply accept an old insurance document or a verbal promise that the company is covered.
Contact the Insurance Company Directly
One of the safest steps is to contact the insurance provider or agent listed on the certificate.
Use independently verified contact information rather than relying only on a phone number supplied in a sales conversation.
Ask the insurer to confirm that the policy is current and applies to the contractor’s business.
Also ask whether the coverage is suitable for the type of work being performed.
A certificate provides evidence of reported coverage, but it does not change the policy or guarantee that a particular claim will be covered.
6. Check Workers’ Compensation Insurance
Workers’ compensation insurance is another important consideration.
If a worker gets injured while performing work at your property, you do not want to face unnecessary financial or legal complications.
Ask the contractor for proof of workers’ compensation coverage.
Before signing an agreement, check:
- Whether the business carries an active policy.
- Whether the policy covers the workers assigned to your project.
- Whether subcontractors are properly insured.
- Whether any applicable exemptions have been documented.
Michigan’s LARA homeowner guidance recommends that homeowners include a requirement for liability insurance and workers’ compensation coverage in their contractor agreements.
If a contractor uses subcontractors, ask who is responsible for confirming their insurance.
7. Look for Warning Signs Before Hiring
Even if a contractor provides a license number and insurance certificate, you should still look at the bigger picture.
Some warning signs deserve extra attention.
They Refuse to Show Their License
A contractor who avoids providing basic license information may not be properly qualified.
Do not move forward until you can verify the credentials.
Their Insurance Has Expired
An expired certificate or policy may mean that the contractor’s coverage is no longer active.
Request updated documentation and verify it with the insurance provider.
They Demand Full Payment in Advance
Be careful if someone asks you to pay the entire project cost before work begins.
Michigan LARA advises homeowners not to pay the full amount upfront. Use a written payment schedule tied to project progress.
They Pressure You to Sign Immediately
A trustworthy contractor should give you enough time to review the estimate, contract, license, and insurance documents.
Avoid signing anything you do not understand.
They Refuse to Provide a Written Contract
A verbal agreement can lead to misunderstandings about costs, materials, timelines, and responsibilities.
Always request a detailed written agreement before work starts.
8. Review the Contract Before Signing
Once you have verified the contractor’s credentials, carefully review the agreement.
A good contract should explain exactly what the contractor will do and how the project will be managed.
Make sure it includes:
- The contractor’s legal name and business address.
- The license number.
- A detailed description of the work.
- Material brands, styles, and specifications.
- Total project cost.
- Payment schedule.
- Estimated start and completion dates.
- Responsibility for permits.
- Insurance requirements.
- Warranty information.
- Procedures for changes to the original project.
Read every section before signing. If something is unclear, ask for clarification in writing.
Never rely on promises that are not included in the agreement.
9. Compare Contractors Before Making Your Final Decision
Checking a license and insurance policy is a strong starting point, but it should not be your only hiring criteria.
Compare at least three written estimates when practical. Look at the materials, work descriptions, warranties, and payment terms instead of choosing the lowest price automatically.
You can also:
- Ask for recent customer references.
- Review independent customer feedback.
- Check the contractor’s permanent business address.
- Ask about previous projects similar to yours.
- Confirm who will supervise the work.
- Understand how unexpected problems will be handled.
A reliable contractor should answer questions clearly and provide the information you need to make a confident decision.
Choose Prime Home Remod for Your Exterior Improvement Needs
Finding the right contractor starts with knowing what to check. A valid license, proper insurance, a clear contract, and a professional approach all matter when improving your home.
Prime Home Remod provides roofing replacement, siding replacement, window replacement, and gutter replacement services. Founded by third-generation builder Josh Kroll, the company brings more than 70 years of family building experience to its home improvement work.
With a Rochester Hills location, Prime Home Remod helps Michigan homeowners improve and protect their properties through professional exterior installation and replacement services.
If you are planning an exterior improvement project, contact Prime Home Remod to discuss your home’s needs and request a consultation.
Frequently Asked Questions
How do I check if a contractor is licensed in Michigan?
Visit the Michigan LARA license search portal and search using the contractor’s name or license number. Check the license status, expiration date, license type, and approved trades before hiring.
Does Michigan require roofing contractors to have a license?
Michigan regulates residential builders and maintenance and alteration contractors. Roofing is one of the trades listed under maintenance and alteration licensing. Check the contractor’s specific license and qualifications for the work being performed.
What insurance should a home improvement contractor carry?
Homeowners should ask for proof of general liability insurance and workers’ compensation coverage. These policies address different risks and can help protect against certain claims involving property damage or workplace injuries.
Is a Certificate of Insurance enough to prove coverage?
A Certificate of Insurance provides basic information about reported coverage, but it is not the insurance policy itself. Contact the insurance company or agent to verify that the policy is current and appropriate for the project.
Can I hire a contractor without checking their license?
You can choose whom to hire, but skipping license verification creates unnecessary risks. Always confirm that the contractor holds the required qualifications for the work before signing an agreement.
Should I pay a contractor before the work begins?
Avoid paying the entire project cost upfront. Michigan LARA recommends making payments as work progresses and getting receipts for payments. Follow a clear payment schedule included in your written contract.
What should I do if a contractor refuses to provide proof of insurance?
Do not sign the contract or allow work to begin until you receive and verify the required insurance documents. If the contractor cannot provide proof, consider another qualified professional.
Why should I get multiple estimates before hiring a contractor?
Multiple estimates help you compare prices, materials, project details, and warranties. They can also help you identify unusually low bids or unclear project costs before making a final decision.
