Maryland Home Improvement Question
and Answer 2026/2027 | Grade A+
• Contractor -✓✓A person who performs or offers a home improvement
• Subcontractor -✓✓A person who performs all or part of a home improvement
BUT does not enter an agreement with homeowner
• Sales Person -✓✓A person who sells home improvement contract
• Home Improvement contract -✓✓An agreement between a homeowner and a
contractor to perform a home improvement. Has to be in writing and be signed by
both parties
• Owner -✓✓An owner, Owner's agent, tenant or an authorized person
• A license -✓✓Contractor or salesperson, issued by home improvement
commission
• Years of experience has to be -✓✓2 years
• General liability insurance -✓✓coverage that can protect you from a variety of
claims, at least $50,000
• Home Improvement Guaranty Fund -✓✓The fund compensates homeowner for
actual loss cause by the act or omission of a licensed contractor
• Actual Loss -✓✓Homeowner may recover up to $20,000 per contract maximum
amount can be awarded of a contractor is $100,000
• Federal income tax -✓✓based on information the employee provided on the W-4
form
• Income Statement -✓✓Sometimes called the profit and loss statement, is a
summary of the company's revenues and expenses over a given period of time
and Answer 2026/2027 | Grade A+
• Contractor -✓✓A person who performs or offers a home improvement
• Subcontractor -✓✓A person who performs all or part of a home improvement
BUT does not enter an agreement with homeowner
• Sales Person -✓✓A person who sells home improvement contract
• Home Improvement contract -✓✓An agreement between a homeowner and a
contractor to perform a home improvement. Has to be in writing and be signed by
both parties
• Owner -✓✓An owner, Owner's agent, tenant or an authorized person
• A license -✓✓Contractor or salesperson, issued by home improvement
commission
• Years of experience has to be -✓✓2 years
• General liability insurance -✓✓coverage that can protect you from a variety of
claims, at least $50,000
• Home Improvement Guaranty Fund -✓✓The fund compensates homeowner for
actual loss cause by the act or omission of a licensed contractor
• Actual Loss -✓✓Homeowner may recover up to $20,000 per contract maximum
amount can be awarded of a contractor is $100,000
• Federal income tax -✓✓based on information the employee provided on the W-4
form
• Income Statement -✓✓Sometimes called the profit and loss statement, is a
summary of the company's revenues and expenses over a given period of time
