Licensed, Insured & Bonded: The Scary Pitfalls of Hiring an Unqualified General Contractor

pitfalls of hiring an unqualified general contractor

Making changes to your home is not something you do without first doing your homework when it comes to hiring a general contractor. There are many things to consider when you are searching for the company that does the best work at a price you can afford. HFS Financial is here to assist you with the home improvement loan that your project will require. We also want to assist you with information as you select the right general contractor for the job. Here is what you need to know about “Licensed, Insured & Bonded: The Scary Pitfalls of Hiring an Unqualified General Contractor.”

Not Asking Adequate Questions

First, some homeowners are new to the remodeling world. Familiarize yourself with what to ask a contractor before hiring them to complete your dream home improvement. As you peruse a contractor’s website, be looking for the key phrase “licensed, insured & bonded.” This is more than just a catchy phrase to add for a customer’s peace of mind.

The word licensed will let you know that the contractor has a valid document recognized by their state of business stating that they are qualified to be a general contractor. You also want to know that the contractor of your choice is insured — or prepared to pay for any issues on their end that may arise throughout the construction process. And a bonded contractor has made preparations for legal and financial accountability to all parties involved. 

Remember to ask about these important items before you sign any paperwork. Don’t enter into a contract until you have had all of your questions answered sufficiently.

Delays of Completed Dreams

Next, no one likes to wait for their dream renovations to come to life. Hiring a general contractor that is not qualified to complete the necessary work is definitely a scary thought. An unqualified general contractor could easily fail to deliver anything that is presentable. This would mean a delay of your completed dreams. And you will have to go through the contractor hiring process all over again.

Carefully read through customer reviews on sites you are scouring. Chat with people you know and trust about general contractors they recommend. All of this research will help you choose a capable contractor. 

Loss of Money

Finally, one more of the scary pitfalls of hiring an unqualified general contractor is that you could lose some money in the process. Contractors often require payment in advance as a deposit for the work that they will complete. If you are duped by an unqualified contractor, you could end up with no completed work and no money to hire someone who is capable of doing the job correctly. 

Carefully read through the terms and conditions of the proposed contract before agreeing to hire any particular contractor for your substantial home improvement project. This is the best way to protect yourself and your investment in the long run.

Contact our knowledgeable HFS Financial loan consultants today at 1-800-254-9560 to discuss your loan needs. We have a premier financing method that is ideal for homeowners. You can inquire anytime about the options available to you. It only takes 60 seconds to get the process started. We will take care of the loan. You just search for a qualified, reliable general contractor. “You Dream It, We Finance It!”


HFS Financial solely operates in the home improvement lending space which means we can confidently say that we are THE HOME IMPROVEMENT LOAN EXPERTS. When you apply at HFS Financial you will get a customized loan experience tailored to ensuring you get the best personal loan to meet your home improvement loan needs.