If you own the home can the insurance company require you to use a licensed contractor?

If you own your own home, your insurance company can require you to use a licensed contractor for home improvement projects or repairs even if you have no mortgage on your home. The reason is that having an unlicensed contractor do work creates risk for the insurance company.

One of the primary purposes for having contractor licenses is to ensure that they have the knowledge to perform the work safely. It also allows Texas to suspend contractors who are known to cut corners or do shoddy work.

Poorly done work creates the risk of fire, electrical shock, roof leaks, or other hazards. These are all things that the insurance company would end up having to pay for, and it would often be difficult or impossible for them to later seek reimbursement from the contractor long after the work was done. To prevent these types of claims, your insurance company will almost always require you to use a licensed contractor.