What is a Maryland MHIC license?
The Maryland Home Improvement Commission (MHIC) license is required by state law for any contractor performing home improvement work over $500. The license is issued by the Maryland Department of Labor's Division of Occupational and Professional Licensing.
To get an MHIC license, a contractor must:
- Pass a state exam on Maryland home improvement law
- Carry $50,000 in general liability insurance minimum (many carry more)
- Contribute to the Maryland Home Improvement Guaranty Fund (which covers homeowners up to $20,000 for proven losses caused by licensed contractors)
- Maintain a verifiable business address and phone number
Working with an unlicensed contractor in Maryland means: no Guaranty Fund protection, no recourse if work fails inspection, your homeowner's insurance may deny related claims, and you have limited legal options if disputes arise.
How to verify a Maryland MHIC license in 60 seconds
- Go to the Maryland Department of Labor license search: dllr.state.md.us/license/mhic
- Enter the contractor's MHIC number (or search by name)
- Check three things:
- Status: Active (not expired, suspended, or revoked)
- Disciplinary actions: None (or review what's been filed)
- Insurance: On file (if not, walk away)
For reference, Top Notch Contractors holds MHIC #05-147079. Feel free to verify it yourself before our first meeting.
Red flags that tell you a contractor isn't licensed
- They want cash only, or won't accept a check made out to a business name
- They can't or won't provide an MHIC number on request
- They use a different "company name" each time you Google them
- Quote is delivered handwritten or with no business letterhead
- They don't pull permits. Instead asking you to pull them as the homeowner
- They show up in an unmarked truck with no tools branding
- Reviews are sparse, all very recent, or all 5-star with no detail
What if my contractor is unlicensed and the job goes wrong?
You have three options, in order of effectiveness:
- File a complaint with MHIC: Even unlicensed contractors fall under state jurisdiction. The state can issue cease-and-desist orders and fines.
- Sue in Maryland District Court: Small claims handles disputes up to $5,000. For larger losses, you'll need civil court.
- Contact the State's Attorney: Operating without an MHIC license while doing $500+ work is a misdemeanor in Maryland.
Important: the Maryland Home Improvement Guaranty Fund only covers losses from licensed contractors. If you hire unlicensed, you're on your own for recovery.
Why the MHIC license matters more in Baltimore than other markets
Baltimore's homes are older than most. Many rowhomes predate 1900, and even suburban Baltimore County's full of 1950s–70s construction. That means:
- More hidden conditions during demo (asbestos, lead paint, knob-and-tube wiring)
- More structural surprises behind plaster walls
- More permit oversight from the city
- More opportunity for an unscrupulous contractor to walk off the job mid-project
A licensed MHIC contractor has insurance covering you, the homeowner, against accidents and property damage during the work. Unlicensed contractors don't.
Frequently asked questions
Is the MHIC license the same as a general contractor license? Yes, for home improvement work in Maryland, the MHIC license is what you need. Commercial general contractors hold a separate license. Some contractors hold both.
Does my contractor need a separate license for plumbing or electrical? Yes. The MHIC license covers home improvement scope, but specific plumbing and electrical work requires Maryland Primary Plumber and Primary Electrician licenses respectively. We hold or sub to licensed primary tradespeople for all gas, drain, and panel work.
Can I verify a contractor's insurance directly? Yes, ask for a Certificate of Insurance (COI) that lists you as additionally insured for the project address. Any legitimate contractor will provide this within 24 hours. We provide it as part of our standard contract.
What if a contractor's MHIC is "pending"? 'Pending' means an application is being processed; they aren't licensed yet. Wait until status is "Active" before signing a contract.
Ready to work with a verified Baltimore contractor?
Top Notch Contractors holds MHIC #05-147079 and has served Baltimore homeowners since 2010. We're fully licensed, insured, and bonded. Verify our license at dllr.state.md.us/license/mhic before our first consultation.
📞 Call 410-598-9933 or request a free consultation today.