What Is the Maryland Home Improvement Contractor Bond?
Maryland home improvement contractors usually qualify by showing enough net worth. If you cannot, you post a bond instead — $30,000 if your finances fall a little short, or $100,000 if you file no finances at all. The bond backs the state Guaranty Fund that pays harmed homeowners.
Who Needs This Bond in Maryland?
- Most Maryland home improvement contractors qualify by net worth, with no bond.
- If your finances fall short, you post a $30,000 or $100,000 bond.
How to Get Bonded — Step by Step
- Apply for your MHIC home improvement license.
- If you cannot show enough net worth, buy your bond here.
- File the bond with the MHIC.
- Get your license and start working.
Renewal & Continuous Bond Coverage
Maryland home improvement licenses run two years. If you carry the bond, renew it with your license.
Frequently Asked Questions
Do Maryland home improvement contractors need a bond?
Usually not. You only post a bond ($30,000 or $100,000) if you cannot show enough net worth. The state Guaranty Fund protects homeowners.
Does the Maryland bond protect me?
No. The bond protects your customers and the state, not you. If a claim is paid, you pay the surety back. It is not insurance for you.
How fast can I get bonded in Maryland?
Most quotes come back fast, often within a day. Many bonds are issued the same day for good credit.
How much does the bond cost?
You pay a yearly premium — a small percent of the bond amount. Your rate depends mostly on your credit.
How a Surety Bond Works
A contractor bond is a type of surety bond. The picture below shows the three parties and what happens if someone files a claim.
Ready to get your Maryland Home Improvement Contractor Bond?
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Related: All Maryland surety bonds · What is a surety bond? · How surety bond costs are calculated