Water damage doesn't give you much time to shop around, and that's exactly when homeowners are most likely to hire the wrong person. A few checks take only minutes and protect you if something goes wrong. Maryland has a licensing system and a compensation fund for home improvement work, and knowing how they work gives you leverage before you sign anything. For the bigger picture of what the job involves, start with Annapolis water damage restoration.
Start with the license
The Maryland Home Improvement Commission (MHIC) says only MHIC licensed contractors may enter into contracts with homeowners to perform home improvement work. That's the rule behind the first question to ask any company: what is your MHIC license number? MHIC's website has a "Check the License Status of a Contractor or Salesperson" option that links to its license search. Look the number up yourself, and check that the name on the license matches the name on the estimate and contract.
Subcontractors work differently. MHIC eliminated the subcontractor license category on July 1, 2016, and subcontractors may now work without a license "for an MHIC licensed contractor." That means the company you sign with must be the licensed one, and it's responsible for the people it sends.
What the Guaranty Fund does
MHIC's Guaranty Fund compensates homeowners for actual monetary losses. The maximum a homeowner may recover is the amount paid to the contractor, up to $30,000, and the fund applies only to work done by licensed contractors. If total claims against one contractor exceed $250,000, payments are prorated. It's a safety net after something goes wrong, not a replacement for choosing carefully, and it's one more reason to confirm the license before you pay anyone.
Know which job you are hiring for
Water damage usually involves several different kinds of work, and each is a separate decision.
| Job | What it covers | Ask |
|---|---|---|
| Emergency restoration | Water removal, drying, cleaning and monitoring. | Moisture readings, equipment plan and documentation. |
| Plumbing repair | Fixing the pipe, fixture or line that failed. | Who is performing it and who pulls the permit. |
| Electrical work | Checking or repairing wiring, outlets and panels that got wet. | Who is performing it and who pulls the permit. |
| Mold work | Containment, removal and cleaning. | A written plan and who verifies the result. |
| Repairs and rebuilding | Drywall, flooring, cabinets, trim and paint. | A written scope and an MHIC license number. |
Plumbing and electrical work are separately regulated trades, so ask who will actually perform them. See water damage repair for how the rebuilding phase fits in.
What a good written scope includes
- the work to be done now, listed separately from repairs to be done later
- which materials will be removed and which will be dried in place, with the reasoning
- the equipment planned, the expected number of days and how extra days are approved
- how moisture will be measured, how often, and whether you'll receive the readings
- how hidden damage will be handled and priced if it's found
- who will handle permits, plumbing and electrical work
- the payment schedule, the warranty terms and the license number on the paperwork
The water damage restoration cost guide explains how to compare estimates that describe different scopes.
Questions to ask before you say yes
- What is your MHIC license number, and is it in your own company's name?
- What category of water do you think this is, and why?
- What will you remove today, and what will you try to save?
- How and when will you take moisture readings?
- Will you send documentation to my insurance company?
- Who will be on site, and are they your employees or subcontractors?
- What happens if you find more damage when you open the walls?
Red flags
- No license number, or reluctance to share it.
- No written scope, or a scope that only says "water damage repair."
- Pressure to sign immediately or pay a large amount upfront with no itemization.
- No moisture meter, or no willingness to show readings.
- Plans to remove or replace everything without explaining why.
- A promise of a perfect result before anyone has opened the walls, since some damage can't be known until then.
Permits and approvals in Annapolis
The City of Annapolis says an owner who intends to alter or repair a building must first apply for any required permit, and that work on water and electric lines needs plumbing and electrical permits. In the Historic District, exterior projects still need a certificate of approval even when they're exempt from a building permit. Outside the City, Anne Arundel County's permit center handles permits, and for drywall replacement the county says permit requirements may vary and asks homeowners to send the address and scope of work. Ask the contractor which office applies and who pulls the permits. Our guide to water damage in older and historic Annapolis homes has more on the Historic District.
Insurance and your contractor
Before you sign, ask your insurer what it needs from a contractor and what it covers. A policy may cover the water damage but not the failed pipe, or the reverse for sewer backup, depending on endorsements. Our guide to homeowners insurance and water damage in Maryland explains the common gaps. Keep the contractor's moisture readings, photographs and itemized invoices, since they're what the insurer will ask for.