Fence Blog

Thinking About a Home Improvement Project? Read This First.

If you’re planning to install a fence, gate, or railing at your New Jersey home, a major law change now affects who you can legally hire, and how well your investment is protected.

As of March 31, 2024, all home improvement contractors (HICBs) and home elevation contractors (HECBs) in New Jersey must meet stricter licensing, insurance, and bonding requirements before they can work on your property. These new rules are designed to protect homeowners from unreliable contractors, unfinished work, and financial loss.

As New Jersey fence contractors, we want you to feel confident about your fencing investment. Below, we’ll break down what the new law means for you, why it matters, and how choosing a fully compliant contractor ensures your home and finances are secure.

What Is the New Jersey Home Improvement Contractor Licensing Act?

Signed into law by Governor Phil Murphy on January 8, 2024, the Home Improvement and Home Elevation Contractor Licensing Act significantly strengthens the rules for contractors working on residential properties.

The law creates the New Jersey State Board of Home Improvement and Home Elevation Contractors, which oversees licensing and ensures contractors are properly insured and financially accountable.

Previously, some homeowners unknowingly hired uninsured or underqualified contractors, leading to unfinished projects, costly damages, and legal disputes. This new law aims to fix that problem by making sure all contractors meet higher financial and professional standards before taking on home improvement projects.

What Are the New Requirements for Contractors?

For a contractor to legally install a fence, gate, or railing at your home, they must now have:

1. Workers’ Compensation Insurance

If the contractor has employees, they must provide workers’ compensation coverage—unless exempt under New Jersey law. This protects you from being held liable if a worker is injured on your property.

2. Commercial General Liability Insurance

Every contractor must carry at least $500,000 in liability insurance ($1 million for home elevation contractors). This ensures that if their work damages your property or causes injuries, you’re financially protected.

3. Compliance Bond or Additional Security

For the first time, contractors must maintain a compliance bond, letter of credit, or other financial security. The amount depends on the value of their contracts:

• $50,000 for contracts over $120,000 or total annual contract values exceeding $750,000
• $25,000 for contracts between $10,000 and $120,000, or annual contract values between $150,000 and $750,000
• $10,000 for contracts under $10,000, or annual contract values under $150,000

This financial safeguard protects homeowners in case a contractor fails to complete work, violates the contract, or causes financial harm.

How This Law Protects You as a Homeowner

1. Reduces the Risk of Contractor Fraud

Too often, homeowners have hired contractors who take a deposit but never show up to finish the job. With these new requirements, only financially stable, professional contractors can operate legally—reducing your risk of being scammed.

2. Ensures Proper Insurance Coverage

Uninsured contractors put you at risk. If a worker gets injured or damages your property, you could be liable for costly medical or repair bills. These new rules guarantee that licensed contractors carry insurance, so you’re not left covering unexpected expenses.

3. Improves Project Completion & Quality

When contractors are required to maintain financial security, they’re less likely to abandon a job or cut corners on quality. This means a better experience for homeowners and fewer horror stories about unfinished fences or poorly installed gates.

Frequently Asked Questions

1. Why should I care about this law as a homeowner?

Because it directly affects who you can legally hire to work on your property. If you hire a non-compliant contractor, you may have no legal protections if something goes wrong.

2. How do I know if my contractor is compliant?

Ask for proof of licensing, insurance, and bonding. Reputable contractors—like Dennisville Fence—will have no problem providing this information.

3. What happens if I hire a contractor who doesn’t meet these requirements?

If a contractor lacks proper insurance or bonding, you may be held financially responsible for damages, injuries, or unfinished work. Worse, you may have no legal recourse to recover lost money.

4. Do these new requirements increase the cost of hiring a contractor?

While compliant contractors must meet stricter financial standards, this protects homeowners from unexpected costs. It ensures you get reliable service, better workmanship, and full legal protection.

5. Does Dennisville Fence meet all these new requirements?

Yes! We are fully licensed, bonded, and insured under the new law—giving you peace of mind when you hire us for your fencing, gate, or railing project.

Choose a Fully Compliant Contractor for Your Fence Installation

At Dennisville Fence, we take homeowner protection seriously. Our team is 100% compliant with New Jersey’s new licensing and bonding laws, which means:

• Full workers’ compensation coverage to protect against on-site injuries
• $500,000+ in liability insurance for property damage and accidents
• Compliance bonds in place, ensuring financial security for your project

When you hire Dennisville Fence, your investment is backed by the strongest legal and financial protections available.

Schedule Your Fence Installation with Confidence

Don’t take risks with unlicensed or uninsured contractors—especially now that New Jersey’s laws have changed. Work with a trusted, compliant expert like Dennisville Fence for a stress-free, fully protected fencing project.
Contact us today to request a quote and get started on your fence installation with a contractor you can trust.