Maryland Home Improvement Contractor’s Bond

The State of Maryland requires all Home Improvement Contractors to file a $20,000 bond for a two year period with the Maryland Home Improvement Commission. The bond guarantees that Home Improvement Contractors will follow Maryland Business Regulations relating to home improvements. The bond protects homeowners from monetary losses caused by poor workmanship or failure to complete a home improvement contract. This bond may also be referred to as the MD Home Contractor Bond or the MD Contractor’s License Bond.

The bond covers homeowners who hire licensed contractors to perform home improvement work for residential buildings only. Home improvement work is defined as alteration, remodeling, repair or replacement of a residential building or individual condominium unit. The bond ensures the contractor will comply with the Maryland Business Regulation Article, Title 8. The Homeowner is compensated for actual monetary losses due to poor workmanship or failure to perform a home improvement contract. If a claim is awarded the maximum amount a homeowner will recover is the amount paid to the contractor up to $20,000.
A contractor who wishes to perform Home Improvement work must be licensed by the Maryland Home Improvement Commission. In order to be eligible to receive a license, they are required to meet the financial solvency guidelines or file a surety bond. The bond amount must be $20,000 with a 2 year term.
The average cost is $400 for a 2 year term for candidates with good credit. Rates are available for non-standard credit.
To get a free bond quote for a Maryland Home Improvement Contractor's Bond, complete the online application or request a PDF application via an email to