The Truth About Unlicensed HVAC Contractors in New Jersey
If you’ve spent any time in local Facebook groups or on Nextdoor lately, you’ve probably seen the posts:
“Looking for someone reasonable to replace my AC”
“My guy can do it for half the price”
“I know a handyman who does HVAC on the side”
Some people post business cards of a company that doesn’t even have a license number on the card. That’s outright illegal.
As the Rostron Premium Home Services Marketing Director for many years, I’ve seen a growing trend that should concern every homeowner in Monmouth and Ocean County. More and more homeowners are being fooled into hiring unlicensed contractors because they were recommended in a Facebook group or neighborhood app. Just because someone has 20 people recommending them online doesn’t mean they’re qualified, insured, or even legally allowed to perform HVAC work. In fact, many homeowners don’t realize they’ve hired an unlicensed contractor until something goes wrong.
“But They Told Me They Were Licensed”
One of the biggest misconceptions homeowners have is assuming that because someone says they’re licensed, they actually are. Unfortunately, that’s not always the case. We’ve seen situations where individuals claim to be licensed but are actually working under someone else’s license, using another company’s credentials, or simply hoping homeowners won’t verify their information.
The good news? New Jersey makes it easy to check.
Before hiring anyone, verify their credentials using the New Jersey Division of Consumer Affairs License Verification System:
New Jersey License Verification Portal
You can search by company name, contractor name, or license number to confirm whether they are legitimately licensed and in good standing. The state provides this system specifically so homeowners can protect themselves before signing a contract.
Why Hiring an Unlicensed HVAC Contractor Can Be a Huge Mistake
1. Permits Often Aren’t Pulled – Many unlicensed contractors avoid permits because they can't legally obtain them. Without permits, there’s no inspection process to ensure the installation meets code requirements. This can create problems when selling your home, filing insurance claims, or addressing future repairs.
2. No Insurance Protection – What happens if they damage your home?
What if they fall through your ceiling, damage electrical wiring, or start a fire? Licensed contractors typically carry liability insurance to protect homeowners. Unlicensed contractors often do not. If something goes wrong, you could be left paying the bill.
3. Equipment Warranties Can Be Voided – Many manufacturers require equipment to be installed according to code and manufacturer
specifications. A poor installation can result in denied warranty claims, leaving homeowners responsible for expensive repairs that should have been covered.
4. Safety Risks – HVAC systems involve electrical wiring, refrigerant handling, gas piping, venting, combustion, and airflow design.
Improper installations can create serious issues including:
Carbon monoxide hazards
Electrical failures
Refrigerant leaks
Water damage
Premature equipment failure
Reduced efficiency and comfort
Licensed contractors must meet state requirements and demonstrate competency before performing this work.
5. The Cheap Price Usually Becomes Expensive – We regularly get calls from homeowners after they’ve hired the “cheap guy” from Facebook.
What started as a bargain often turns into:
Equipment replacements
Corrective repairs
Failed inspections
Permit issues
Higher utility bills
Complete system reinstallation
In many cases, the homeowner ends up paying more than they would have if the job had been done correctly the first time.
Do Your Homework Before You Hire
Before allowing anyone to work on your home’s heating or cooling system:
✓ Verify their license.
✓ Ask for proof of insurance.
✓ Make sure permits will be obtained when required.
✓ Research reviews from multiple sources.
✓ Get a well-documented proposal.
✓ Confirm the company name on the proposal matches the license information.
Don’t rely solely on Facebook comments or Nextdoor recommendations. While many recommendations come from good intentions, most homeowners don’t know whether the contractor was licensed, insured, or following code requirements.
Protect Your Home Investment
Your HVAC system is one of the largest investments in your home. The company you choose can determine whether that system lasts 2 years or 20 years. At Rostron Premium Home Services, we've spent decades serving Monmouth and Ocean County homeowners. Unfortunately, we are often called in after another contractor has left behind unsafe, inefficient, or improperly installed equipment.
Read this blog here for an example
A professional installation may not always be the cheapest option upfront, but it’s almost always the least expensive option in the long run.
Before you hire anyone, do your research. A few minutes verifying credentials today could save you thousands of dollars tomorrow.
