Serving Dupage, Cook and Lake Counties, Mount Prospect, Schaumburg, Wood Dale
Wednesday, July 25th, 2018 by Pro Home 1
Most homeowners want to hire a company that is licensed, bonded, and insured to provide them with peace of mind, but many do not know what it means. They mistakenly lump insurance and bonds together into the same category seeking out “bonded insurance”. While insurance and bonds have commonalities, they are different products. So, what does it mean to be bonded and insured?
The process of registering in a specific state requires contractors to obtain proof of insurance and paying a fee. Some states may require an additional step of purchasing a bond and may require contractors to undergo supplementary testing. Most states use licensing and registration interchangeably.
Generally speaking, a bond provides “supplementary insurance” for the contractor and protects the contractor’s customers if he or she fails to complete a job properly, fails to pay for permits, subcontractors or some other financial obligations. Furthermore, a contractor’s bond protects customers from being burdened with an unpaid bill or unpaid workers who worked on a project, damage to the property, or even stolen property.
The agency that issues bonds is usually a surety company which requires the contractor to pay regular payments to keep current. Even though there are different types of bonds, overall, they are beneficial not only to the homeowner, but to the contractor, and to suppliers and subcontractors. Most homeowners will not hire a contractor who does not offer the protection of a bond. Additionally, suppliers and subcontractors will only work with a contractor who has a bond in place as well.
Competition is fierce in any construction and remodeling business, so just because you get slightly higher price quotes from various roofing and/or siding contractors, does not mean they are trying to scam you, it most likely means they pay extra to be licensed, insured and bonded. “Saving” on credentials and licensing is not the optimal way to getting a remodeling job done.
This not only is true on large projects, such as replacing a roof or siding on multi-family properties, churches, and commercial or industrial buildings, but for single-family homes as well. It is important to note, that remodeling contractors and roofing and siding contractors in Illinois have options when selecting bonds.
PRO Home 1, is a licensed, insured and bonded siding and roofing contractor. It is our professional obligation to continue to meet high standards of workmanship, provide you with quality materials, and superlative service.
We are committed to giving you straight talk and providing you home pride. Just let us know how we can help you with your next exterior home remodeling project!