MHIC Licensing

Question 1

Under Maryland law, who is required to hold an MHIC license before performing home improvement work?

Accepted Answer

Any contractor performing home improvement work valued at $500 or more in labor and materials

Answer

Maryland law requires any person or company contracting for home improvement work where the total cost of labor and materials is $500 or more to hold a valid MHIC license. The $500 threshold applies per project and covers anyone who solicits, bids, or performs such work directly with a homeowner.

Question 2

What is the minimum surety bond amount required for an MHIC license applicant?

Accepted Answer

$20,000

Answer

MHIC applicants must furnish a surety bond of at least $20,000 as part of the licensing requirements. The bond protects consumers from financial loss due to contractor default or violations of Maryland home improvement law.

Question 3

How long is an MHIC license valid before it must be renewed?

Accepted Answer

2 years

Answer

MHIC licenses are issued for a two-year period. Before expiration, contractors must submit a renewal application, pay the renewal fee, maintain a valid surety bond, and complete any required continuing education to keep their license active.

Question 4

Which Maryland state agency issues and enforces MHIC licenses?

Accepted Answer

Maryland Home Improvement Commission (MHIC)

Answer

The Maryland Home Improvement Commission (MHIC) is the state agency responsible for licensing home improvement contractors, investigating consumer complaints, and enforcing the Maryland Home Improvement Law.

Question 5

What is the consequence if an MHIC licensee's required surety bond lapses or is cancelled during the license period?

Accepted Answer

The license is automatically suspended until a replacement bond is filed

Answer

If the required surety bond lapses or is cancelled, the contractor's MHIC license is automatically suspended. The contractor cannot legally perform home improvement work until a new bond is filed with the Commission and the suspension is lifted.

(MHIC) Maryland Home Improvement Contractor Practice Test

(MHIC) Maryland Home Improvement Contractor Practice Test

MHIC Licensing