To apply for a home improvement contractor license in the District of Columbia, the Department of Consumer and Regulatory Affairs (DCRA) requires contractors to purchase a Home Improvement Bond, which is a specific type of surety bond. Generally speaking, home improvement contractors are individuals or businesses that perform maintenance, renovate, or modify residential properties for a fee.
The purpose of the Washington, DC Home Improvement Contractor License Bond is to protect the District and individuals from financial loss if the licensed contractor violates any regulations or laws established by the District of Columbia relating to the Home Improvement Sector. If the licensed contractor does cause financial injury to someone due to fraud or failure to adhere to the licensing laws, the injured party can file a claim against the contractor’s bond. The surety company will investigate the claim and compensate the injured party up to the bond amount (if the claim is valid). This bond differs from insurance because the principal is ultimately responsible for reimbursing the surety company for all valid claims that get paid out, plus any additional fees and expenses incurred by the surety.
As emphasized by the Code of the District of Columbia, all individuals and businesses operating as home improvement contractors in the District must obtain a license with the DCRA. The licensing process requires you to get a District of Columbia Home Improvement Bond. Obtaining a bond can also help to establish you and your business with a trustworthy and respectable reputation.
The DC Home Improvement Bond typically has a two-year term and a required bond amount of $25,000. Fortunately, this is not the amount you will pay for your bond. Surety companies consider several factors when quoting these bonds, including your credit (using a soft credit check), experience in the industry, and sometimes, your business and personal financials. Those with standard credit may see quotes starting as low as 1.5% to 2% of the bond amount.
If you have nonstandard credit, we encourage you to apply for your bond anyway. At EZ Surety Bonds, we work with a variety of markets to find you the best quote available. Simply fill out our short online application to get your free quote.
The entity that requires you to get the DC Home Improvement Contractor License Bond, referred to as the obligee, is the Department of Consumer and Regulatory Affairs. Their contact information is below:
District of Columbia
Department of Consumer and Regulatory Affairs
1100 4th Street, SW,
Washington, DC 20024
Phone: (202) 442-4400
Fax: (202) 442-9445
Email: dcra@dc.gov
The application process with EZ Surety Bonds is quick, easy, and free! Simply fill out the short application or, if you still have questions, contact our surety experts at info@ezsuretybonds.com or call 1-866-546-4605.
How do I become a Registered Home Improvement Contractor in the District of Columbia?
To become a licensed DC Home Improvement Contractor, you must provide the following:
**Please note that to obtain your Washington, DC Home Improvement Contractor License, you must designate and maintain a Basic Business License for at least one Home Improvement Salesperson.
You can apply for your Home Improvement License directly online through the DC Business Center Portal.
How much is a DC Home Improvement Bond?
The DC Home Improvement Bond has a required bond amount of $25,000. Fortunately, you’ll typically be required to pay only a percentage of that bond amount. The surety will analyze several factors, most importantly your credit, before providing you with a quote for your bond. Applicants with excellent credit may see premium rates starting around 1.5% of the bond amount. But those with nonstandard credit are still encouraged to apply for their free quote!
I purchased my District of Columbia Home Improvement Bond—what’s next?
After purchasing your bond, we will mail the original bond to you. Most obligees require you to file the original document directly with them, and some obligees allow you to file an electronic copy. Every obligee has unique bond filing requirements, so always confirm with your obligee before doing anything with your bond.
You’ll know if you need a surety bond because some entity will have required you to obtain one. They must also inform you of which specific bond type you’ll need. There are thousands of bonds across the country, all of which vary by state and industry.
Visit EZSuretyBonds.com to browse hundreds of bonds by state, type, or industry.
