In Maryland, the Business Regulation Article bars acting as a home improvement contractor without a Maryland Home Improvement Commission licence, and an unlicensed contractor cannot sue for payment or file a lien. Whether extraction and drying alone fall under that rule is not settled here, so ask for the licence and a written scope and check both.
Key takeaways
- Business Regulation Article section 8-601 bars acting as a home improvement contractor without an MHIC licence, and an unlicensed contractor cannot sue for payment or file a lien, according to secondary summaries of the statute.
- Home improvement covers repair, replacement and remodeling of a residence, while apartment buildings of four or more units and condo common areas fall outside it.
- Whether emergency water extraction or drying alone needs an MHIC licence is not settled here, so ask any contractor how it classifies the work and verify its credentials.
- When repairs or rebuilding are involved, ask for the MHIC licence number and check it on the state lookup before signing or paying.
- Get the scope and price in writing before work begins, and keep restoration, plumbing, roofing and mold work as separate, clearly described items.
What does Maryland require of home improvement contractors?
The Maryland Home Improvement Commission licenses home improvement contractors. Under Business Regulation Article section 8-601, acting as a contractor or selling home improvement without a licence is barred, and an unlicensed contractor cannot sue for payment or file a lien. These points come from secondary summaries, and the current statute text was not reviewed for this guide.
That is worth saying plainly, because it limits what this page can claim. The aim here is to explain how to protect yourself, not to give legal advice. The safest habit is to ask for the licence number, check it with the Commission and keep a record of what you found.
The consequences matter mostly to the owner. A contractor who cannot lawfully collect on a contract is a risk to someone who has paid in advance or who expects a warranty to be honored. Penalty amounts for unlicensed work are reported inconsistently in the sources reviewed, so none is quoted here.
Maryland's licensing rules are administered by the Commission, which also takes complaints. Contact details and current licensing rules are on the state's own pages, and they change, so check them directly rather than relying on a summary, including this one.
What counts as home improvement?
Home improvement covers the repair, replacement and remodeling of a residence. Apartment buildings of four or more units and condo common areas fall outside the definition, according to a 2006 fiscal note. One summary says MHIC treats demolition and clean-up as outside it. Treat these as hints about scope, not as a ruling on your job.
A burst-pipe job usually has two parts. One is mitigation: stopping the water, extracting it, drying the structure and removing wet materials. The other is repair: replacing drywall, flooring, cabinets, paint and fixtures. The second part is plainly home improvement. The first is the part where the sources reviewed do not settle the question.
The practical lesson is that the line between the two can blur on a single job. A contractor that removes drywall and then offers to rebuild it is doing both. Ask what each line of the estimate covers and whether the licence applies to it.
If a job crosses both sides of that line, you can ask the contractor to split the paperwork: an emergency mitigation scope first, with a stated price, and a separate repair contract later once the structure is dry and the real needs are known. That keeps the emergency decisions quick and the larger decisions deliberate.
| Type of work | What is known | What to do |
|---|---|---|
| Rebuilding drywall, floors, cabinets, paint | Falls within home improvement for a residence | Ask for the MHIC licence number and verify it |
| Extraction and drying only | Whether a licence is required is not settled here | Ask how the contractor classifies the work and what it holds |
| Demolition and clean-up | One summary says MHIC treats it as outside the definition | Ask for credentials and a written scope |
| Work in a building of four or more units, or condo common areas | Outside the home improvement definition per a 2006 fiscal note | Ask what licence the contractor holds for that building type |
| Plumbing in Montgomery or Prince George's County | Plumbers there must be registered with WSSC Water | Ask for the registration number |
| Mold remediation | State licensing status could not be confirmed | Ask for credentials, training and a written scope |
How do I verify a licence?
Ask the contractor for its MHIC licence number, then check it on the state's licence lookup and confirm that the name, status and business match the person you are dealing with. Write down the date you checked. A contractor who cannot or will not give a number before work begins is giving you information too.
Check the details, not just the number. A licence belongs to a business and sometimes to a named individual, and a valid number on someone else's name does not help you. Look at status, which should be current, and at any history the lookup shows.
Ask also for proof of insurance, and ask your own insurer or agent how to handle a contractor's insurance certificate. Do not assume a claim is paid because a contractor says so.
When a contractor gives you a number, search it exactly as written, and keep a screenshot or printout. If something changes later, you have evidence of what the lookup showed on the day.
- Business name on the contract matches the licence
- Licence status is active on the day you check
- The person on site works for that business
- The contract shows the licence number
- Subcontractors, such as plumbers, are named and credentialed
What should be in writing before work starts?
The scope of work by room, the water category, the equipment and the expected days, what is not included, how the price changes if the scope grows, the payment schedule and who approves changes. It should separate restoration from rebuilding. Ask for it before any equipment is switched on, except where an emergency step is needed to protect the house.
Emergencies are the awkward case. Water cannot wait for a long negotiation, so crews often start with a short emergency scope and a stated price for the first stage. That is acceptable if the first stage is clear and a fuller written scope follows once the extent is known.
What matters is that you can tell, afterwards, what you agreed to. Keep the paperwork with the photographs and the moisture readings.
Who else needs credentials?
Plumbers, roofers, electricians and mold assessors each have their own credentials. In Prince George's and Montgomery counties, plumbers must be registered with WSSC Water. The status of Maryland's mold-remediation licence could not be confirmed, so ask any mold contractor for training, credentials and a written scope, and keep the assessor separate from the remediator.
Maryland passed a mold-remediation licensing law in 2008 (Chapter 537), set to end on July 1, 2019, and a 2017 fiscal note said the Commission had not licensed these firms for lack of funding. The law did not cover assessments, jobs under 10 square feet or nonresidential work. Whether any mold licence exists today is unconfirmed.
For electrical work after a flood or leak, ask for the electrician's licence and a written description of what was checked. For gas appliances that sat in water, ask a qualified technician to check them before use.
Ask about the people as well as the business. Who will be in your house, whether they work for the company or for a subcontractor, and who is in charge on site are reasonable questions at the start of an emergency job.
What are the warning signs?
Pressure to sign immediately, a refusal to give a licence number, an estimate with no scope, a request for a large payment up front, a price that cannot be explained by area and days, and a contractor who arrives uninvited after a storm. None proves wrongdoing, but each is a reason to slow down and check.
After a big storm, door-to-door offers are common. A reputable crew will wait while you check credentials. If someone insists that the offer expires within hours, that is a pressure tactic.
Be wary of work that is described as insurance-approved. Only your insurer can say what it approves, and no contractor can promise an outcome.
Another quiet warning sign is an estimate that cannot be explained in plain words. A contractor who cannot tell you how many drying units will run, for how many days and what the readings must reach before they leave has not built a plan. You are entitled to ask, and the answer should be specific to your house, not a general speech about water.
How do I compare two estimates?
Line them up by stage: assessment, extraction, removal of materials, drying equipment and days, cleaning, after-hours charges, and exclusions. Differences usually come from scope, not from one contractor being cheaper. Ask each contractor to explain what its estimate assumes, then ask the higher one what it covers that the lower one does not.
An estimate that is a single lump sum is hard to compare. Ask for it to be itemized by room or stage, with the number of drying units and expected days stated, because equipment days are among the largest parts of a restoration bill.
Be careful about reading a low estimate as a good one. A scope that leaves out removal of wet insulation or monitoring visits can be cheaper now and costlier when mold appears. A written statement of what happens when readings do not reach the dry goal is a sign that a contractor has thought it through.
| Line | Contractor A says | Contractor B says |
|---|---|---|
| Rooms and levels covered | Write what each includes | Write what each includes |
| Water category assumed | Clean, gray or contaminated? | Clean, gray or contaminated? |
| Equipment and expected days | Units and days | Units and days |
| Monitoring visits | How many, and what is recorded? | How many, and what is recorded? |
| Exclusions | Repairs, plumbing, roofing, mold, contents | Repairs, plumbing, roofing, mold, contents |
| Licence and registration | Number and status checked on | Number and status checked on |
Frequently asked questions
Do I need an MHIC licence check for emergency water removal?
Whether extraction and drying alone need an MHIC licence is not settled here. Ask the contractor how it classifies the work, and check its licence whenever repairs or rebuilding are part of the job.
What happens if I hire an unlicensed contractor?
Secondary summaries say an unlicensed contractor cannot sue for payment or file a lien, which can leave you with fewer protections. Penalties are reported inconsistently, so none is quoted. Ask the Commission or an attorney for advice.
Is a plumber licence the same as an MHIC licence?
No. Plumbers have their own credentials, and in Prince George's and Montgomery counties they must be registered with WSSC Water. Ask for both the plumbing credentials and, for repairs, the MHIC licence.
Can I pay a deposit?
Many jobs involve some payment schedule. Ask for it in writing, understand when each payment is due and what has been done by then, and be cautious about paying a large sum before any work has been done.
What if the contractor does a poor job?
Keep the contract, photographs and moisture readings, put your complaint in writing and check what remedies exist for your contractor's licence type. The Commission and an attorney can advise on the options.
Sources
This guide is general information for Prince George's County homeowners, not a substitute for an on-site inspection. Prices are estimates. See our disclaimer.