What is the Tennessee Home Improvement Contractor License Bond?
The Tennessee Home Improvement Contractor License Bond (CLB) is a surety bond required by the Tennessee Department of Commerce and Insurance (DCI), Board for Licensing Contractors for those applying for a state home improvement contractor license.
A surety bond consists of three parties: the principal (home improvement contractor), the obligee (the State of Tennessee), and the surety company. The surety guarantees that the principal will comply with licensing and permit requirements and fulfill its obligations.
If the principal fails to fulfill its obligations, the injured party may file a claim against the surety bond. After an investigation into the validity of the claim, the surety may compensate the claimant up to the full bond amount. Regulation non-compliance, property damage, unsafe construction, and other unethical and fraudulent business practices are examples that may result in a claim.
If there is a valid claim and the surety pays the claimant, the principal is financially liable for reimbursing the surety for the claim, plus any additional fees and expenses incurred. Promptly resolving complaints and abiding by all laws and regulations are often the best ways to avoid claims.
Who has to get a TN Home Improvement CLB?
To acquire a home improvement license in Tennessee, you will need a Tennessee Home Improvement Contractor License Bond.
According to the Tennessee Code, home improvement refers to changes made to residential buildings or land. This includes:
- Repairs
- Replacements
- Remodeling
- Alterations
- Additions
It also includes other projects such as driveways, swimming pools, porches, garages, landscaping, fences, roofing, painting, and more.
Note that residential remodeling projects ranging from $3,000 to $24,999 will require a home improvement license, but this requirement is applicable only in certain counties that have adopted the law.
As of 2023, the following counties have a home improvement license requirement: Bradley, Davidson, Hamilton, Haywood, Knox, Marion, Robertson, Rutherford, and Shelby.
How much does the Tennessee Home Improvement Contractor License Bond cost?
The Tennessee Home Improvement Contractor License Bond must be in a bond amount of $10,000. Fortunately, you will not pay the full bond amount to obtain your bond.
With EZ Surety Bonds, you can conveniently buy this bond online for a premium of only $75 (plus shipping and applicable fees). Simply fill out our quick online application. Unlike certain other contractor license bonds, this bond doesn't require a credit check.
Obligee Information
The Tennessee DCI is the obligee or entity that requires the TN Home Improvement CLB. Here are their contact details:
State of Tennessee
Department of Commerce and Insurance
Board for Licensing Contractors
500 James Robertson Pkwy.
Nashville, TN 37243-1150
Phone: (615) 253-6235
How to get your Tennessee Home Improvement CLB
Getting a bond through EZ Surety Bonds is fast and easy. Simply fill out our brief online application, submit your payment, and we will send you the original bond by mail, which you can then submit to the obligee, the TN Board for Licensing Contractors.
If you have any inquiries or need assistance, feel free to contact our friendly surety experts at bonds@southcoastsurety.com or call us at 1-800-361-1720.
Frequently Asked Questions
How do I obtain a Home Improvement License in Tennessee?
Applying for a Tennessee Home Improvement Contractor's License requires the following:
- Tennessee Board for Licensing Contractors Home Improvement Contractor Bond (or other financial responsibility, such as an irrevocable letter of credit or a cash bond),
- ID photo and SSN,
- Copy of General Liability and Workers' Compensation Insurance,
- Tennessee Secretary of State Corporation Registration (corporations, partnerships, and LLCs),
- Remodeling experience for past clients or employers,
- $250 application fee (as of 2023).
The total project cost should fall within $3,000 to $25,000 to fall under the home improvement contractor license. If the project cost exceeds $25,000, a contractor's license for general, subcontractor, electrical, mechanical, plumbing, HVAC, roofing, masonry, or construction management may be necessary.
The home improvement contractor license remains valid for two years, starting from the date of issuance, and must be renewed before the expiration date.
How much is the Tennessee Home Improvement Contractor License Bond?
You can obtain the Tennessee Home Improvement CLB with a bond amount of $10,000 for a premium of only $75 when you apply online. No credit check is necessary. Simply complete the quick application on our website and purchase your bond today.
After I purchase my TN Home Improvement CLB, what do I do?
After purchasing your bond, we will mail the original document to you. In some cases, your obligee may accept an electronic copy of the bond instead of the original signed by the principal. However, we highly recommend that you carefully review and understand the filing requirements of your obligee before submitting your bond, as additional permit bonds and other requirements may be mandated by local code offices, and such requirements are subject to change.
