A Tennessee home improvement contractor bond can be used to show financial responsibility when contractors apply for a home improvement license in the state. The home improvement license is required to perform residential remodeling projects that cost between $3,000 to $24,999 in nine Tennessee counties.
Contractors in other counties may also want to get a home improvement license (or HI license) since customers tend to prefer working with state-licensed and bonded contractors.
The cost of this bond may differ depending on which bonding company you choose. Through NNA Surety Bonds, the premium for a one-year term is $100 for $10,000 of liability.
The Tennessee Board for Licensing Contractors defines home improvement as repairing, replacing, remodeling, altering, converting, modernizing, improving, or adding to any residential land or building, such as driveways, swimming pools, porches, garages, landscaping, fences, roofing, painting, and other structures.
Please note that if a home improvement project is over $25,000, a contractor’s license (versus a home improvement license) is required. This distinction is important because if a contractor only has a home improvement license and works on a project over $25,000, they could be subject to a misdemeanor. You can learn more about Tennessee contractors’ licensure at the Tennessee Department of Commerce & Insurance’s website.
Any contractor working on remodeling projects that cost between $3,000 to $24,999 in the following nine Tennessee counties must be licensed and bonded:
Other counties may adopt the same home improvement licensing law over time. To ensure compliance, check with your local government for any specific requirements for home improvement licensure in your area.
You can purchase the bond from NNA Surety Bonds for $100 for a one-year term without a credit check. We only need some simple information about you and your business to process your bond. Click the link below to buy the bond and download it for immediate use in your home improvement licensing application.
Alongside providing proof of financial responsibility, there are several other steps required to get a home improvement license. You can get more information by visiting the Tennessee Department of Commerce & Insurance’s website.
The Tennessee home improvement contractor license is sometimes called a Tennessee handyman license. Like all surety bonds, the home improvement license bond is a liability to the contractor and helps to guarantee that the contractor will fulfill their contractual obligations and comply with Tennessee state law.
As an alternative to submitting a $10,000 surety bond with their home improvement license application, contractors can also prove financial responsibility with a $10,000 cash bond, property bond, or ILOC (irrevocable letter of credit).