Key points
- Exact contracting and payment identity
- Active MHIC license status
- Current liability-insurance evidence
- Written contract and payment records
Match the identity—not only the number
Compare the official MHIC result with the exact name on the proposal, contract, invoice, payment instructions, and insurance certificate. A valid number displayed beside a different contracting or payment identity does not resolve the mismatch. Save a dated copy of the official result.
Request current liability-insurance evidence
Maryland's MHIC page says home-improvement contractors must maintain at least $500,000 in general liability insurance under the requirement effective June 1, 2024. Ask for current evidence naming the insured business and policy period; a website statement that a company is insured is not the same as dated evidence.
Preserve the contract and change orders
Maryland publishes specific home-improvement contract requirements. Keep the signed agreement, incorporated documents, change orders, photographs, invoices, cancelled checks or other payment proof, and written communications. Those records help define the promised scope and may matter if a dispute arises.
Understand the Guaranty Fund boundary
Maryland says the Guaranty Fund may reimburse eligible homeowners for certain actual losses caused by a licensed contractor's unworkmanlike, inadequate, incomplete, or abandoned work. The current maximum is the amount paid up to $30,000 per claimant, with a $250,000 aggregate limit per contractor that can lead to prorated awards. It is not automatic insurance for every dispute, and work by an unlicensed contractor is outside the Fund.
Complaint and claim are separate steps
MHIC states that a homeowner first files a complaint, which triggers a regulatory investigation. An eligible Guaranty Fund claim is a separate process and generally must be brought within three years after the loss or damage was discovered or should have been discovered. Confirm the current process directly with MHIC rather than relying on this summary.
Do not rely on a badge alone
A website logo, review total, manufacturer badge, 'licensed and insured' statement, or license number is evidence supplied by the seller—not independent confirmation. Verify each material claim with the responsible issuer when it affects the hiring decision.
Questions homeowners ask
Is a Maryland business registration the same as an MHIC license?+
No. Home-improvement licensing is separate from general business registration. Verify the active MHIC contracting identity through Maryland's official search.
How much liability insurance must an MHIC contractor maintain?+
Maryland's MHIC page states that home-improvement contractors must maintain at least $500,000 in general liability insurance under the requirement effective June 1, 2024. Request current evidence for the exact contracting business.
Does an MHIC license guarantee the roofing work?+
No. Licensing is a required checkpoint, not a guarantee of price, quality, availability, claim coverage, or outcome. Compare the scope, evidence, insurance, contract, and references too.
Does the Guaranty Fund cover an unlicensed roofer?+
Maryland says the Fund applies to eligible losses involving licensed contractors and does not reimburse work performed by an unlicensed home-improvement contractor.
How much can the Maryland Guaranty Fund pay?+
Maryland currently states a maximum of the amount paid up to $30,000 per claimant and a $250,000 aggregate cap for claims against one contractor. Eligibility, proof, exclusions, timing, and possible proration still apply.