What are the biggest red flags when hiring a handyman?

Handyman red flags are almost entirely about scope — what work a handyman is legally allowed to do without a contractor license, and what work shifts permit-fail and liability risk to the homeowner. The downsides are unpermitted work that fails inspection at sale, insurance claim denial, and personal liability for injury or property damage.

Taking on licensed-trade work. Most states cap unlicensed handyman work at a low dollar threshold ($500 California, $1,000 Arizona/Nevada/Oregon, varies in Texas/Florida by municipality, $0 in Washington). Above the threshold, a contractor license is required. AND, regardless of dollar amount, certain trades are licensed-only in nearly every state: any electrical (hard-wired fixtures, new circuits, panel work), any plumbing (water heater, gas line, drain reroute), any HVAC, any structural framing, any roofing. A handyman doing any of these without the trade license is operating illegally, regardless of dollar amount, and the homeowner inherits the liability.

Scope creep above the dollar threshold. The classic pattern: a $400 drywall repair quote turns into $700 because "while I'm at it, I should also fix...". The total project is now over California's $500 line, and the entire scope is unlicensed contracting. Defense: get the full scope in writing and require any additions to be re-quoted (and potentially handed off to a licensed contractor) before work resumes.

No general liability insurance. A handyman without general liability who damages your property (cracked tile, water damage from a botched plumbing patch, fire from an electrical mistake) leaves you with no recourse but small-claims court. Verify the insurance certificate directly with the carrier — a PDF can be canceled three weeks before the job.

No workers compensation. If the handyman or a helper falls off a ladder or is injured on your property, and there's no WC, the injured worker can sue YOU personally. Most homeowner's insurance policies do not cover injuries to hired workers.

No written estimate. "I'll do it for about $X" creates a dispute when the final bill is $X*1.5. Get every job above $200 in writing with scope, materials, labor hours, and an "any change order requires written approval" clause.

Cash only. Cash creates no paper trail. If the work is defective, there's no payment record to anchor a refund or small-claims case. Use credit card (chargeback protection) or check.

"I don't need a permit for this." The handyman proposes to skip the permit on work that legally requires one (any electrical, plumbing, HVAC, structural, roofing). At sale or refinance, the unpermitted work surfaces, and you pay to redo it through a licensed contractor.

No Secretary of State business registration. If the "handyman" is not a registered LLC or sole proprietorship with an EIN, the entity does not exist legally. Any dispute becomes a personal-against-individual lawsuit rather than against a business with insurance.

Verification approach. Handyman verification is harder than other trades because license boards usually have no record. The Groundcheck (earthmove.io/trust) approach for handymen is: confirm Secretary of State entity registration, check county court records for prior judgments, verify the quoted scope is within the state's unlicensed dollar threshold, and verify general liability and workers compensation directly with the insurance carrier. For state-specific thresholds, see earthmove.io/trust/license/handyman/[state].