The 10-minute checklist
- License: look up the license number on your state's licensing board (for example, California's CSLB); some trades are licensed by the county or city.
- Insurance: ask for a certificate of liability insurance (and workers' comp if they have employees), then call the insurer to confirm it is active.
- Reputation: search the business name plus "complaint", "scam" and "reviews", and check the BBB.
- Identity: look up the phone number they called from and the owner's name. A real local business usually has a consistent name, number and address.
- Paperwork: get at least three written estimates and a signed contract before work starts (FTC).
Check the contractor's name or number
Private search. Nobody is notified.
Red flags
- Door-to-door offers because they are "in the area" with leftover material.
- Pressure to decide today, or full payment up front.
- Cash only, wire, gift card, payment app or crypto.
- They offer to arrange financing and ask you to sign quickly.
Your right to cancel
Under the FTC's Cooling-Off Rule you generally have three business days to cancel a sale over $25 made at your home (with some exceptions, such as emergency repairs you requested).