How to Become a Licensed Tennessee Home Improvement Contractor

In Tennessee, a home improvement license is required for remodeling projects worth $3,000 to $24,999, per the 2010 Home Improvement Law. Several counties have adopted this law, including: 

• Bradley
• Davidson
• Hamilton
• Haywood, 
• Knox
• Marion
• Robertson
• Rutherford
• Shelby

This guide covers essential licensing requirements to ensure a smooth application and compliance with state regulations.

Note: If you are performing remodeling projects worth over $25,000, you need a general contractor's license.

How to Get a Tennessee Home Improvement Contractor License

Follow the six-step process below to become a licensed home improvement contractor in Tennessee.

Step 1: Check name availability

Ensure your license name is unique from others by using the license search tool. The license name will be the same as what is listed on your bond and cannot be an assumed name.

Step 2: Provide proof of financial responsibility 

To provide proof of financial responsibility, submit one of the following securities in the amount of $10,000:

• Surety bond 
• Cash bond
• Property bond
• Irrevocable letter of credit

You can buy your Tennessee home contractor bond from SuretyBonds.com instantly for just $100.

Step 3: Get required insurance coverage

Home improvement contractors are required to have general liability insurance with a minimum coverage of $100,000. Workers' compensation insurance is mandatory for employees, although business owners may qualify for an exemption if they meet eligibility criteria and register accordingly.

Step 4: Complete your application

Next, fill out your home improvement license application online. You’ll need to disclose the following:

• Criminal history
• Business history
• Complaints or judgment history
• Proof of insurance

Your experience as a contractor, subcontractor, or an employee working under other contractors is also required. Be sure to include any relevant experience and list professional references. 

Step 5: Provide supporting documents

When your application is complete, attach the following required documents:

• Resume and references 
• Insurance documents
• Surety bond or other financial responsibility forms
• Business documents
• Proof of registration with the SoS if you created a business entity
• Sample consumer contract

Step 6: Submit application

Submit your application online and pay the $250 application fee to the Tennessee Department of Commerce and Insurance (TDCI). 

You will likely receive your license in the mail after reviewing your application. However, you may need to attend an interview with the Board if your application is incomplete, contains discrepancies, lacks a current experience record, or has other issues. 

If the Board requires your appearance, you will be informed of the interview details. Failure to fully disclose required information could result in license denial or revocation.

How to Renew Your Home Improvement Contractor License

Tennessee home improvement contractor licenses are valid for two years. You will typically receive a renewal notice 90 days before the expiration date. To renew, submit the following:

• Completed renewal form
• $200 renewal fee
• Updated documents, such as proof of financial responsibility (e.g., bond, insurance), if needed.

Tennessee home improvement surety bonds expire annually and must be renewed to maintain licensure. When you choose SuretyBonds.com, you'll receive renewal instructions and an invoice to keep your bond active.  

Tennessee Home Improvement Contract Guidelines 

As a Tennessee home improvement contractor, you must create clear, complete and detailed contracts. Customer contracts should include the following information: 

• All parties' names and addresses
• Your license number and statement about licensing
• The date of signing
• Project start and end dates
• Total project cost
• A full description of the work and materials

There should be no blank spaces left and the following notice must be included above the owner's signature line: "NOTICE TO OWNER: Do not sign this contract if blank. You are entitled to a copy of the contract at the time you sign.” 

Contracts cannot contain any authorization for you to confess judgment and no employee or agent can change the contract on behalf of the owner.

For roofing services paid by insurance, contracts must also include:

• A three-day cancellation right
• Detailed repair descriptions
• Contractor contact information
• A refund policy for money paid before cancellation.

See the in-depth contract requirements on the TDCI webpage.

How Much Does It Cost to Get a Home Improvement Contractor License in Tennessee?

The cost of becoming a licensed Tennessee home improvement contractor is typically around $350. Exact pricing will vary depending on your surety bond provider and ongoing insurance premiums. You can expect the following upfront expenses:

• $250 application fee
• $100 surety bond*

*This price reflects the SuretyBonds.com home improvement contractor license bond rate. 

More Resources 

• Tennessee Department of Commerce and Insurance: Home Improvement Licensing Requirements
• Tennessee Secretary of State: Rules of the Tennessee Board for Licensing Contractors