Free MHIC Training

What is the MHIC Guaranty Fund?

Short answer. A fund financed by mandatory contributions from every licensed contractor, under COMAR 09.08.01.20, that reimburses homeowners for actual financial loss caused by a licensed contractor's violation of home improvement law, up to set limits.

  • COMAR 09.08.01.20
  • COMAR 09.08.01.26

Work it through

You're the contractor. Pick what you'd do, then see how each choice plays out.

A new client asks you about the MHIC Guaranty Fund. "My friend got ripped off by her contractor and she got money back from some fund. What is that exactly?"

  1. Correct

    The MHIC Guaranty Fund is funded by mandatory contributions from all licensed contractors (COMAR 09.08.01.20). It provides reimbursement to homeowners who suffer actual financial loss due to a licensed contractor's violation of home improvement law. The fund has a per-claim and aggregate limit. Knowing this and explaining it confidently shows professionalism.

  2. Dismissive

    The Guaranty Fund is directly relevant to your client. It's a selling point for hiring licensed contractors — homeowners have financial protection if something goes wrong. Under COMAR 09.08.01.26, your contract must include a notice about the Guaranty Fund. Dismissing it suggests you either don't understand it or don't want the client thinking about recourse.

All 15 complaints, warranties & the guaranty fund questions

  1. What is the MHIC Guaranty Fund?
  2. What happens if you ignore an MHIC complaint letter?
  3. Can a homeowner file an MHIC complaint after your warranty ends?
  4. Is a two-day delay grounds for an MHIC complaint?
  5. How should you prepare for an MHIC disciplinary hearing?
  6. What counts as project abandonment?
  7. How do you respond to an MHIC abandonment complaint?
  8. What documentation defends you against an MHIC complaint?
  9. How should you handle a warranty callback?
  10. Does your warranty cover damage the homeowner caused?
  11. What do you owe a client in an after-hours warranty emergency?
  12. How do you run a final walkthrough and punch list?
  13. What should a project completion package include?
  14. How do you handle a client disappointed with finished work?
  15. Who is liable when a flip buyer finds unpermitted work?