A Maryland home improvement contractor bond is required form contractors that may not meet certain solvency levels per the Maryland Home Improvement Commission (MHIC). An applicant must demonstrate to the Commission a minimum of two (2) years of experience in home improvement work, construction and/or related education in addition to "financial solvency based on the scope and size of the applicant's business to total assets, liabilities, personal creditworthiness and net worth. The MHIC maintains a guarantee fund to which all licensees contribute. Homeowners may claim against the fund for monetary losses due to poor workmanship or failure to perform an agreed upon contract. The maximum amount of claim against the fund is the amount paid to the contractor up to $20,000, hence the bond identical bond penalty required.
The license is issued for a two year period. The Maryland home improvement contractor surety bond must likewise run two years, concurrent with the license period. The surety ensures that the principal will comply with Annotated Code of Maryland, Business Regulation Article, Title 8, Home Improvement and the regulations promulgated by the Commission. The surety bond is a "L&P" obligation however it serves as a financial guarantee of losses sustained by home owners that file claims against the guarantee fund. Applications materials, questions and documents may be directed to:
Maryland Home Improvement Commission
500 North Calvert Street
Baltimore, Maryland 21202-3651
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