Trust Library / Verification
Most homeowner disasters are preventable. This checklist is the fastest, highest-leverage way to confirm you're hiring a legitimate professional.
1) Confirm licensing (when applicable)
Ask for the contractor's license number and the exact legal business name. Then verify through your state's official licensing lookup (not a screenshot). If a trade requires licensing in your state (electrical, plumbing, mechanical, builder), this is non-negotiable.
Many states maintain free online databases where you can search by license number or business name. Look for the license status, expiration date, and whether any complaints or disciplinary actions have been filed. If the contractor can't provide a license number or gives you one that doesn't match, that's a hard stop.
2) Verify insurance — don't just "take their word"
Ask for a Certificate of Insurance (COI) sent directly from their insurance agent. The COI should show general liability coverage and, when relevant, workers compensation. Confirm the policy is active and note the liability limits.
A legitimate contractor will have no issue producing a COI on request. If they say "I'm insured" but can't provide documentation, treat that the same as uninsured. The COI should name you or your property as the certificate holder. Typical general liability minimums for residential work are $500,000 to $1,000,000. Workers comp is required in most states if the contractor has employees.
For more detail on what to look for on the COI, read our guide: Proof of insurance: exactly what to ask for.
3) Demand a written, itemized scope
Vague estimates create disputes. A professional scope includes materials, quantities, prep steps, exclusions, and assumptions. If they won't specify what's included, you're accepting an unknown risk.
The scope of work should describe every major task in plain language: demolition, framing, materials used, paint colors, fixture models, cleanup responsibilities, and who pulls permits. It should also clearly state what is not included. A professional contractor will welcome this level of detail because it protects both sides.
4) Control payment risk
- Avoid paying large sums upfront. A deposit of 10–25% is standard for most residential work.
- Use milestones tied to real progress, not calendar dates. Pay when framing is complete, when rough-in passes inspection, when finish work is done.
- Retainage (a holdback of 5–10%) protects you until final punch-list completion and your walk-through sign-off.
- Never pay cash without a receipt. Always use a method that creates a paper trail.
5) Check references the right way
Ask for 3 recent customers and 1 older project (12+ months old). Verify the address and the scope performed. Ask: "Did the final price match the estimate?", "Were change orders explained in writing?", "How did they handle problems?"
Online reviews are helpful but insufficient on their own. Direct conversations with past clients reveal details that star ratings don't capture: how the contractor communicated during delays, whether they left the site clean, and whether warranty issues were resolved. If the contractor refuses to provide references, that itself is a red flag.
6) Watch for the fast red flags
- Pressure tactics ("today only" pricing, fear-based urgency)
- No physical address, no proof of insurance, unwilling to provide license details
- Unclear scope + big upfront payments
- Refuses permit responsibility when permits are required
- Asks to be paid only in cash or cryptocurrency
- Shows up unsolicited after a storm or disaster ("storm chasers")
For the full breakdown, see our guide: Red flags when hiring a contractor.
7) Use a trust layer when stakes are high
When a project is expensive or safety-critical, you want verification and accountability beyond marketing claims. CraftAuthority™ exists to raise standards and reduce homeowner risk through structured checks and signals.
A trust layer means there's an independent body that has verified the contractor's credentials, insurance, and track record — and that homeowners can submit signals (positive or negative) that are tracked over time. This is different from a directory listing or a paid badge. It's ongoing accountability.
Next steps
Want the short version? Use the checklists. Want accountability? Submit a Signal.