Illinois handles contractor licensing differently than most people expect. Here is how to check who you’re hiring, what the law requires in your contract, and how to spot trouble early.
Do contractors need a license in Illinois?
Illinois has no statewide license for general contractors, but two trades are state-licensed: roofing contractors must be licensed by the Illinois Department of Financial and Professional Regulation (IDFPR), and plumbers and plumbing contractors are licensed through the Illinois Department of Public Health (IDPH). For all other work, licensing is handled by your city or village, so the rules differ across Chicagoland.
Chicago, for example, requires general contractors to hold a city license from the Department of Buildings. The Illinois Attorney General advises contacting your local village hall or township to learn the license rules where you live. You can verify a roofer with IDFPR's online License Lookup and a plumber through IDPH's online license verification tool.
Sources: idfpr.illinois.gov, dph.illinois.gov, illinoisattorneygeneral.gov
How do I check if a contractor is licensed in Chicago?
Use the City of Chicago's free Licensed Trade Contractors lookup at webapps1.chicago.gov/licensedcontractors, run by the Department of Buildings. You can search general contractors, electrical contractors, plumbing contractors, mason contractors, and elevator mechanic contractors, and see each company's license number, license expiration date, and insurance expiration date. If a company does not show an active license, do not hire it for work that requires one.
The site also shows recently expired or inactivated licenses, so you can spot a contractor whose license has lapsed. For roofing work anywhere in Illinois, also check the roofer's state license with IDFPR's License Lookup. In the suburbs, contractor licensing and registration are handled by each village or city, so call your local building department to confirm the rules.
Sources: webapps1.chicago.gov, idfpr.illinois.gov, illinoisattorneygeneral.gov
What insurance should a contractor have before working on my house?
A contractor should carry liability insurance — covering personal injury and property damage — plus workers' compensation insurance for their workers and subcontractors. The Illinois Attorney General advises homeowners to get copies of the contractor's proof of insurance before work starts, and lists refusing to provide proof of insurance as a warning sign. Illinois law also requires nearly every employer to carry workers' compensation coverage.
You can verify a company's workers' comp coverage for free through the Illinois Workers' Compensation Commission's online insurance-coverage search. Also check with your own home insurer to find out what is covered if someone is hurt or property is damaged during your project. In Chicago, the city's contractor lookup even shows each licensed contractor's insurance expiration date.
Sources: illinoisattorneygeneral.gov, iwcc.illinois.gov, webapps1.chicago.gov
What does Illinois law require in a home repair or remodeling contract?
Under the Illinois Home Repair and Remodeling Act, any home repair or remodeling job over $1,000 requires a written contract or work order before work begins. The contract must state the total cost — with parts and materials listed with reasonable particularity, plus any charge for an estimate — and the business name and address of the contractor.
For jobs over $1,000, the contractor must also give you the 'Home Repair: Know Your Consumer Rights' pamphlet before you sign, and both of you must sign a Consumer Rights Acknowledgment Form. For jobs of $1,000 or under, the contractor still must provide the pamphlet, though no signed acknowledgment is required. The Illinois Attorney General also recommends the contract include start and completion dates, a payment schedule, a materials list, and every oral promise in writing.
Sources: ilga.gov, illinoisattorneygeneral.gov
Can I cancel a home repair contract after I sign it in Illinois?
Yes — if the sale was made and signed at your home, Illinois gives you three business days to cancel, and the Illinois Attorney General says the contractor cannot take that right away by starting work or selling your contract to a lender. According to the Attorney General, homeowners over 65 can have up to 15 business days to cancel.
This cooling-off right applies when the contract is made and signed at your home, which covers most door-to-door and storm-chaser sales. Put your cancellation in writing and keep proof that you sent it. If a contractor refuses to honor the cancellation, you can file a consumer complaint with the Illinois Attorney General, which offers free cooperative mediation.
Sources: illinoisattorneygeneral.gov
What are the warning signs of a contractor scam?
The Illinois Attorney General's biggest red flags: a contractor who shows up uninvited, pressures you to sign today, claims to have 'leftover materials' from another job, uses scare tactics about your safety, quotes a price far off from other estimates, asks you to pay for the entire job up front, or offers to drive you to your bank to withdraw money.
Also be wary of companies that can only be reached through an answering service, drive unmarked vehicles or out-of-state plates, or operate from a P.O. box instead of a real local address. The Attorney General's office reports that roughly 20 percent of the more than 20,000 complaints it receives each year involve homeowner-contractor disputes. If you think you have been scammed, document everything and file a complaint with the Illinois Attorney General.
Sources: illinoisattorneygeneral.gov
How can I tell if an online contractor listing is real?
Check that the company actually exists where it claims to: look up the street address, search the business name in your city's and state's license databases, and call to confirm exactly who you are dealing with. In May 2026, the FTC and the Illinois Attorney General sued an Illinois company they allege created thousands of fake online listings — with made-up names and fabricated five-star reviews — for local home repair businesses that did not exist.
According to the Attorney General's complaint, the fake listings used more than 7,600 local phone numbers that routed callers to central representatives, and over 100,000 consumers were deceived since at least 2018 — those are allegations in a pending lawsuit, but the lesson stands: a local-looking listing is not proof of a local business. Cross-check reviews across more than one site and be suspicious of profiles with only a phone number. Directories that verify each contractor before listing them, like The Renovation Room's vetted local Pros, take that guesswork out.
Why does hiring a local contractor matter in Chicagoland?
Because renovation rules here are local: license and permit requirements change from Chicago to each suburb, and the Illinois Attorney General advises checking with your local village hall and building inspection department before work starts. A truly local contractor knows your town's rules, has nearby references you can actually visit, and has a real address you can verify.
The Attorney General recommends talking to a contractor's past customers and asking to see completed jobs in person — far easier when the contractor genuinely works in your area. Recent enforcement over fake 'local' online listings shows why a verifiable local presence matters. That is the problem The Renovation Room was built to solve: connecting Chicagoland homeowners with vetted local Pros.
Sources: illinoisattorneygeneral.gov
This page is general information, not legal or financial advice. Rules, processes, and prices change — confirm details with your municipality or a licensed professional. Last reviewed: July 2026.