Home Services

What to Check Before Hiring a Contractor (License, Insurance, Reviews)

Most homeowners who get burned by a contractor skipped at least one step in the vetting process. The good news: there are three things you can verify...

August 27, 2026 - Updated August 27, 2026 - 5 min read

Most homeowners who get burned by a contractor skipped at least one step in the vetting process. The good news: there are three things you can verify in under 10 minutes that eliminate most of the risk.

The Three Non-Negotiables

1. Verify the License

In California, a CSLB license is generally required when a project needs a building permit, uses additional workers, or totals $1,000 or more in combined labor and materials. Go to cslb.ca.gov, click "Check a License," and enter the contractor's name or license number.

The check shows: - Whether the license is active or expired - What classifications they hold (B general, C-10 electrical, C-36 plumbing, C-20 HVAC, etc.) - Whether there are disciplinary actions or complaints on record - Business address and DBA (doing business as) name

This takes 2 minutes. Do it before you get a quote, not after.

What license types mean: - B - General Building Contractor: Can manage most whole-home projects - C-10: Electrical - C-20: HVAC - C-36: Plumbing - C-39: Roofing - B-2: Residential Remodeling

Match the license type to the work. A B-General license doesn't authorize someone to do electrical or plumbing work as the primary scope.

2. Verify Insurance

Ask for a certificate of insurance before any work starts. The two policies that matter:

General Liability Insurance: Covers property damage during the job. If the contractor breaks something or causes damage while working, their GL policy covers it - not yours.

Workers' Compensation Insurance: Covers the contractor and their employees if they get injured on your property. Without workers' comp, you may be liable for injuries that happen in your home.

A legitimate contractor can email or text you a certificate of insurance within 24 hours of a request. If they can't produce one, that's a deal-breaker.

Verify the certificate is current: Insurance certificates have expiration dates. A certificate from 8 months ago means nothing if the policy lapsed.

3. Evaluate Reviews Critically

Reviews are useful but require interpretation:

Look at overall pattern, not just the average rating: 200 reviews with a 4.3 average are more meaningful than 12 reviews with a 4.9. Recent reviews matter more than old ones.

Read the 2 and 3-star reviews. These are where real feedback lives. Look for patterns: multiple mentions of the same issue (late, added charges, communication problems) indicate real problems.

Check multiple platforms. A business may curate their Google reviews through review requests while having honest feedback elsewhere (Yelp, Nextdoor, BBB).

Watch for review manipulation. A sudden cluster of 5-star reviews after a gap, or reviews that all use similar language, can indicate review farming.

Additional Checks Worth Doing

Search the business name + "complaint" or "scam": Takes 30 seconds. Legitimate problems often show up in search results even before they're resolved.

Verify the address: A P.O. Box as the only address is a yellow flag. A real business with a physical location is easier to hold accountable.

Check the BBB listing: Not infallible, but BBB complaints are a useful data point. An F-rated contractor with multiple unresolved complaints is a clear signal.

Ask for references: For jobs over $2,000, asking for 1-2 references from similar work is entirely reasonable. A contractor who can't provide any is a concern.

What a Written Estimate Should Include

Before signing anything, the estimate should specify: - Scope of work (what exactly will be done) - Materials to be used (brand, model, quantity where applicable) - Labor cost - Total cost including materials - Payment schedule - Timeline - Permit responsibility (who pulls them) - Warranty on labor

Anything missing from this list should be added before you sign.

The Verbal-Only Trap

Some contractors prefer verbal agreements, but a written scope is easier to verify and enforce. California requires a written home-improvement contract for covered projects over $500. Even below that amount, record the scope, price, materials, and change process in writing.

A written scope protects both parties. Any legitimate contractor should have no problem putting the scope in writing.

Bottom Line

Verify the CSLB license online, get a current insurance certificate, and read reviews across multiple platforms - including the middle-range reviews. Do all three in under 15 minutes before any work starts. Skipping any one of them is how homeowners get burned.

Sources and editorial notes

Prices and permit requirements vary by location, property, equipment, and scope. Treat price ranges as planning estimates and confirm current requirements with the relevant authority and contractor.

Related guides

Next step

Need professional help? Describe the job with Aniva and connect with local service providers.