You always hear horror stories on the news of how some poor homeowner was taken advantage of by another contractor who scammed them. Heck, this happens so often we even have a segment on our radio show dedicated to warning people of these lame contractors. 

There are many promises contractors like to use to make themselves sound trustworthy. You may hear or terms like bonded and insured on their radio advertisements, on a billboard, or in an ad from a newspaper or magazine. While this may sound like good advertising, have you ever wondered what these terms actually mean?


When a contractor says they’re bonded, it really means that they have a surety bond. A surety bond or surety is a promise that another party will pay to find you a new contractor if your current contractor fails to meet the obligation of fulfilling the terms of your contract or they’ll give out a payment for the project. This protects the contractor against losses resulting from failure to meet the obligation. 

So in simple terms, a separate party will pay to find you a new contractor if your current contractor fails to meet the obligations of your contract or if the contractor is unable to complete the project, the customer will receive an insurance payment to complete the unfinished work. So if you were presented with this type of guarantee, why wouldn’t you want to go with that company or contractor? 

Well, you should first know that it is extremely costly for a company to be bonded and insured. It would be almost impossible for the business to keep running if they had that type of insurance policy. So it’s more than likely if your contractor is advertising that they’re bonded and insured, they’re probably not. Now they’re already lying to you before they even start your project. Why would you want to work with a company or contractor with faulty promises? 

If you decide to work with a company or contractor that advertises that they’re bonded and insured, make sure you ask for the proof. Also, make sure to ask what type of insurance they have. If the project were to catch fire, flood, or if someone was to get hurt on the job, who is responsible for that? These are very important details you should know before signing a contract. 

With KM BUILDERS, we don’t try to be something we’re not.  You can always count on our team to be honest and truthful. We give you full disclosure about our policies upfront in the first meeting. So call our team at 210-680-5626 to ask how we can help start your next remodel project without the worry of being suckered into a scam.