Step 1: Verify the License Status Online Every state has a licensing board, such as the CSLB in California. Never take a contractor’s word for it. Always ask for their License Number and check its status on the official state website. Make sure the license is Active and look for any past disciplinary actions or legal disputes. Step 2: Demand Three Essential Documents A legitimate contractor will gladly provide proof of insurance. Before signing anything, you must request these three documents:General Liability Insurance: Protects your home from damage during construction.Workers' Compensation: Ensures you aren't held liable if a worker gets injured on your property.Contractor License Bond: Protects you financially if the contractor breaks the contract.