Unlicensed, uninsured, and on your property: are you exposed?

Many homeowners unknowingly take on massive liability by hiring contractors who aren't licensed, bonded, or insured. Whether it’s a painter for the guesthouse, a landscaper for the front entry, or a team remodeling the kitchen, if someone is injured on your property or causes damage during the work, you could be on the hook—not them. Standard Homeowners policies often exclude coverage for unlicensed or uninsured labor, and in some cases, your claim could be outright denied. Even worse, lawsuits from injured workers or subcontractors can pierce personal liability limits and expose your personal assets.

Before you hire anyone—even for a seemingly simple job—ask for a Certificate of Insurance (COI), verify their license status, and confirm they’re bonded. If a contractor hesitates to provide this, it's a red flag. This isn't about red tape; it’s about protecting your home, your lifestyle, and your long-term financial security. For larger projects or luxury properties, it’s also wise to review your liability limits and umbrella coverage—because in high-value homes, small oversights can lead to six- or even seven-figure consequences.