How important is the home improvement contractor license in Maryland?

Licensing & Regulations
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The Maryland Home Improvement Commission licenses and regulates home improvement contractors, subcontractors and salespersons.

If a contractor in Maryland is licensed, it means:

  1. They have taken and passed a licensing exam.
  2. They can prove at least two years of experience in home improvement work, construction and/or related education.
  3. They must provide proof of financial solvency based on the scope and size of their business in relation to total assets, liabilities, credit rating and net worth (Credit Report Application Form).
  4. Proof of current $50,000 liability insurance must be filed with the application for licensure.

Additionally, the Commission has a Guaranty Fund (the Fund) established by assessments to contractors. This Fund compensates homeowners for actual monetary losses due to poor workmanship or failure to perform a home improvement contract. The Fund applies only to work done by licensed contractors. The maximum amount that a homeowner may recover through the Fund is the amount paid to the contractor, up to $20,000.

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I would say very. Only use contractors that are properly licensed