Who requires it
Maryland Home Improvement Commission (MHIC)
License & permit · Maryland
Maryland Home Improvement Contractor Bond
Maryland Home Improvement Commission contractor licensing centers on personal financial solvency, because the Home Improvement Guaranty Fund can pay homeowners when a licensee’s work is unworkmanlike, inadequate, or incomplete. Applicants who do not meet MHIC’s solvency guidelines may bring an indemnitor or post a surety on the Commission’s official bond forms—currently published at $30,000 and $100,000. Meeting solvency with personal assets, bank statements, and credit documentation can mean no bond is required.
Common bond amount
$30,000 or $100,000
Conditional: only when MHIC financial solvency guidelines are not met (or MHIC directs the surety path); official Commission forms at these amounts.
How you file
MHIC contractor bond form, or an indemnitor, when solvency guidelines are not met
Renewal
Maintain while licensed if your file requires a bond; confirm at renewal
Who requires it
Individuals applying for or holding an MHIC home improvement contractor license who do not meet the Commission’s personal financial solvency guidelines, or who otherwise follow MHIC instructions to file a surety instead of relying solely on an indemnitor. Salesperson licenses follow a different MHIC path and are not the subject of these contractor bond forms. New-home construction is registered with the Attorney General’s Home Builder Registration Unit and is outside this MHIC instrument.
How much is required
MHIC does not publish a universal fixed license amount for every contractor. The Commission evaluates personal assets against its solvency guidelines. When those guidelines are not met, MHIC’s application materials point applicants to official surety bond forms at $30,000 and $100,000 (or to an indemnitor). Use the amount and form MHIC directs for your application file—do not assume every licensee posts the same amount, and do not treat older third-party $20,000 figures as current.
How to get and file it
Complete the MHIC exam and contractor application package, including the personal financial worksheet, recent personal bank statements, and full individual credit report. If MHIC or the checklist indicates you are not solvent at the required level, execute the Commission’s Word surety bond form at the amount MHIC specifies, with an authorized Maryland surety, and submit it with the other supporting documents to the Commission. Keep any required surety in force while the MHIC contractor license remains active. If solvency circumstances change at renewal, confirm with MHIC whether the bond, an indemnitor, or updated financials still satisfy the file. Cancellation or lapse of a required bond can interrupt licensing status—restore coverage before any gap MHIC treats as noncompliant.
Cost note
Thirty thousand or one hundred thousand dollars is the required bond amount on MHIC’s forms when a bond is required, not the premium you pay. See bond amount vs premium. Bond amount vs premium →
Requirement checklist
- Trigger
- Required when personal financial solvency guidelines are not met (surety or indemnitor)
- Official amounts
- MHIC Surety Bond forms at $30,000 and $100,000
- Solvency basis
- Personal assets only—MHIC does not count business assets toward solvency
- Who requires it
- Maryland Home Improvement Commission, Division of Occupational and Professional Licensing
- Not covered here
- New-home builder registration and Real Property Title 10 deposit sureties
Official sources
Related resources
Frequently asked questions
If my personal net worth clears MHIC’s guidelines, do I still need a bond?
Usually no. MHIC’s published guidance ties the surety or indemnitor path to applicants who do not meet financial solvency guidelines. Contractors who document adequate personal assets follow the financial-statement path instead—confirm on your specific application or renewal.
Can I use this MHIC bond for new home construction?
No. MHIC licensing does not cover building new homes. New-home builders register with the Home Builder Registration Unit, and deposit-return security under Real Property Title 10 is a separate consumer-deposit tool—not this MHIC solvency bond.
Related Maryland bond guides
Motor Vehicle Dealer Bond
$5,000–$300,000
Maryland motor vehicle and trailer dealers must file a surety bond with the Maryland Department of Transportation Motor Vehicle Administration (MDOT MVA) after the Administration approves the application and before the license issues. Transportation Article § 15-308 sets the amount from sales history—or estimated first-year volume for first-time licensees—using separate schedules for new-vehicle dealers, used-vehicle and long-trailer dealers, and dealers limited to short or boat trailers. One bond can cover the primary location and every supplemental location licensed under the same dealer business license number.
Mortgage Lender Bond
$50,000–$750,000
Maryland licenses mortgage brokers, lenders, and servicers under a single mortgage lender framework administered by the Commissioner of Financial Regulation. Financial Institutions Article § 11-508 requires a continuous surety running to the Commissioner—between $50,000 and $750,000—for the benefit of the State and borrowers harmed by licensing-law violations. The Office of Financial Regulation publishes Maryland-only volume tiers for brokering/lending and for servicing portfolios; when both apply, the higher amount controls.
Title Insurance Producer Bond
$150,000
Maryland title insurance producers must show $150,000 of surety protection—or a letter of credit—before the Maryland Insurance Administration issues the producer license. Insurance Article § 10-121 and MIA licensing instructions set that amount unless the Commissioner approves a lower figure in a specific case. Business-entity producers generally also maintain a separate $150,000 fidelity bond covering employees and title insurance producer independent contractors, unless an MIA waiver form applies.
Surety basics (not repeated here)
Universal surety concepts explained once—linked here instead of repeated on every state or bond page.
Continue with a Maryland application
Maryland will be preselected. Choose your bond type in the application—we confirm the correct product against your agency form before anything is issued.
Last verified 2026-08-11. This guide is based on verified educational content and official sources.
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