Maryland electrical license

1. Who needs a license

An MHIC license is needed for home improvement: altering, remodeling, repairing or replacing all or part of a home, including individual condo units. (source: Maryland Home Improvement Commission (opens in a new tab))

• It does not cover condo common areas or buildings with 4 or more units. (source: Maryland Home Improvement Commission (opens in a new tab))
• Only MHIC-licensed contractors may contract with homeowners. The separate subcontractor license ended on 1 July 2016. (source: Maryland Home Improvement Commission (opens in a new tab))

Salespeople

• Home improvement salespeople need an MHIC salesperson license and can represent up to 2 contractors. (source: MHIC license requirements (opens in a new tab))

Penalties

• Unlicensed home improvement is a misdemeanor: up to $1,000 and/or 6 months for a first offense; up to $5,000 and/or 2 years after that. (source: Maryland Business Regulation 8-601 (opens in a new tab))
• Civil citations include $100 (then $300) for no license number in an ad, $300 ($1,000) for a false ad, and $1,500 ($5,000) for working with or through an unlicensed person. (source: COMAR 09.08.06.02 (opens in a new tab))

2. Electrical license classes

3. Fees, exam, bond and insurance

Fees

Fees are set by the board and can change. Check the official fee page before you pay.

Experience and steps

Experience: 2 years. 2 years of trade experience or related education. Owner, manager or supervisor business experience can replace 1 year (the Commission decides). (source: MHIC license requirements (opens in a new tab), source: COMAR 09.08.01.23 (opens in a new tab))

1. Pass the exam Pass the PSI exam before applying. (source: MHIC license requirements (opens in a new tab))
2. Show your experience 2 years of trade experience or related education. (source: MHIC license requirements (opens in a new tab), source: COMAR 09.08.01.23 (opens in a new tab))
3. Prove financial solvency Send proof of financial solvency, or a surety bond or indemnitor. (source: MHIC license requirements (opens in a new tab))
4. Register your business Corporations send articles and an SDAT Certificate of Good Standing. Trade names are checked with MHIC and registered with SDAT. (source: MHIC license requirements (opens in a new tab))
5. Get insurance Get liability insurance of at least $500,000. (source: Maryland Home Improvement Commission (opens in a new tab))
6. Apply and pay Pay $281.25 application, $22.50 processing and $100 Guaranty Fund. (source: MHIC fees (opens in a new tab))

Exam

An exam is required. Exams are run by PSI. (source: MHIC license requirements (opens in a new tab))

• Pass the PSI exam before you apply. (source: MHIC license requirements (opens in a new tab))

Bond

We're still verifying this, check the official board: MHIC website (opens in a new tab).

Insurance

• General liability: At least $500,000 for MHIC contractors, from 1 June 2024 (Business Regulation 8-302.1). (source: Maryland Home Improvement Commission (opens in a new tab))

The MHIC requirements page still says $50,000. That page is out of date. (source: Maryland Home Improvement Commission (opens in a new tab))

Renewal

• Renew every 2 years. (source: MHIC license requirements (opens in a new tab), source: MHIC fees (opens in a new tab))
• Renewal fee: $281.25. (source: MHIC license requirements (opens in a new tab), source: MHIC fees (opens in a new tab))

Plus a $175 Guaranty Fund payment. (source: MHIC license requirements (opens in a new tab), source: MHIC fees (opens in a new tab))

4. How to look up a contractor

Check a license on the MHIC website ↗ (official site, opens in a new tab)

How: Open the MHIC public license search, find the contractor and check the license is current. (source: MHIC public license search (opens in a new tab))

Full checklist: how to check a contractor

5. Reciprocity (license transfer)

We're still verifying this, check the official board: MHIC website (opens in a new tab).

Use the reciprocity checker

6. Red flags when hiring

• No MHIC license number in their ad or on their vehicle. Both can lead to fines. (source: COMAR 09.08.06.02 (opens in a new tab))
• A contractor who sells or does home improvement through an unlicensed person. (source: COMAR 09.08.06.02 (opens in a new tab))
• Someone who is not MHIC-licensed offering to contract with you directly. (source: Maryland Home Improvement Commission (opens in a new tab))

7. How to complain

Guaranty Fund (homeowner protection)

• The Guaranty Fund pays homeowners for actual losses from poor or unfinished work by licensed contractors, up to $30,000 per claim. (source: Maryland Home Improvement Commission (opens in a new tab))
• If claims against one contractor total more than $250,000, payouts are pro-rated. (source: Maryland Home Improvement Commission (opens in a new tab))

How to file a complaint

• Complete and sign a written MHIC complaint form (available online). (source: MHIC complaint FAQ (opens in a new tab))