What happens when your HIC license lapses and how to get it back

A lapsed New Jersey Home Improvement Contractor (HIC) license means your registration with the state has expired and you cannot legally perform home improvement work until it is restored. The reinstatement process depends on how long your license has been inactive and whether you still meet the state's current requirements.

New Jersey's Division of Consumer Affairs handles HIC licenses. If your license expired within the last five years, reinstatement is usually straightforward — you pay a fee, submit updated information, and the division processes your request. If it has been longer than five years, you may need to retake the HIC exam or meet other conditions that have changed since your license was active.

Key Takeaways

  • Contact the New Jersey Division of Consumer Affairs directly to find out whether your license can be reinstated or must be reissued, since the process differs based on how long it has been inactive.
  • You will need to pay a reinstatement fee and provide proof that you still meet bonding and insurance requirements, which may have changed since your license expired.
  • If your license has been inactive for more than five years, you may be required to pass the HIC exam again or complete other steps the state now requires.
  • The division can tell you in one phone call what documents to submit and whether you need to schedule an exam appointment.

How to contact the Division of Consumer Affairs about your lapsed license

The New Jersey Division of Consumer Affairs, which oversees HIC licenses, is the only source that can tell you exactly what you need to do. Call them at 973-504-6200 during business hours and have your license number ready if you have it. If you do not have your number, provide your name and business name so they can look up your record.

When you call, ask specifically whether your license can be reinstated (a faster process for recent lapses) or whether it must be reissued as a new license (which may require retesting). The answer depends on how long your license has been inactive and what rules have changed. The division staff can also tell you the exact fee amount and whether you need to submit documents by mail or in person.

Documents and requirements you will likely need

Most reinstatement requests require proof that you still carry the bonding and insurance coverage New Jersey requires. You will need a current certificate of insurance showing general liability coverage and a current surety bond certificate. Both documents should show your business name and be dated within the current year or as specified by the division.

You may also need to provide a completed process form, which the division can mail or email to you. Some contractors are asked to provide proof of a current business license from their municipality or a certificate of good standing from the New Jersey Department of the Treasury if they operate as a corporation or LLC. Ask the division which documents explore to your situation before you gather them, since requirements vary.

Reinstatement fees and processing time

The reinstatement fee varies depending on whether your license is being reinstated or reissued. The division can quote you the exact amount when you call. Fees are typically paid by check or money order made out to the State of New Jersey, though payment methods may have changed — confirm this when you contact them.

Processing time is usually two to four weeks from the date the division receives your complete process and fee. If documents are missing or incomplete, the division will contact you to request them, which extends the timeline. Submitting everything at once rather than in pieces speeds up the process.

What to do if you need to retake the HIC exam

If your license has been inactive for more than five years, or if the division tells you that exam requirements have changed, you may need to pass the HIC exam again before reinstatement. The exam is administered by PSI, a testing company contracted by New Jersey. You can schedule an exam appointment through PSI's website or by calling them directly.

The exam covers New Jersey home improvement law, contract requirements, and consumer protection rules. Study materials and practice tests are available through PSI and through some trade organizations. Once you pass, you receive a score report that you submit to the Division of Consumer Affairs along with your reinstatement process and fee.

Reinstatement versus reissuance: which applies to you

Reinstatement is the simpler path and applies when your license lapsed recently — usually within the last five years. You submit your fee and updated bonding and insurance documents, and the division restores your license to active status. Your license number and original issue date remain the same.

Reissuance is treated as a new license process and may be required if your license has been inactive for a longer period or if significant rule changes have occurred. Reissuance may require you to retake the exam, submit a new process with current information, and pay a new license fee. The division will tell you which path applies when you call.

Frequently Asked Questions

Can I do home improvement work while my reinstatement is being processed?

No. You cannot legally perform home improvement work in New Jersey without an active HIC license. Working without a license can result in fines and legal action. Wait until the division confirms your license is reinstated before you take on any jobs.

What if my bonding or insurance has lapsed too?

You will need to obtain new bonding and insurance before you can reinstate your license. Contact your insurance agent or broker to request a new general liability policy and a new surety bond. Once you have both, you can submit them to the division as part of your reinstatement request.

Do I need to retake the HIC exam if my license lapsed?

Not always. If your license lapsed within the last five years and no major rule changes have occurred, you may not need to retake the exam. The division will tell you when you call. If you do need to retake it, you can schedule through PSI and submit your passing score with your reinstatement process.

What if I cannot find my old license number?

You do not need it to start the reinstatement process. When you call the Division of Consumer Affairs, provide your name and business name and they will look up your record. They will give you your license number and tell you what you need to do next.

How much does reinstatement cost?

The fee varies and depends on whether you are reinstating or reissuing your license. Call the Division of Consumer Affairs at 973-504-6200 to find out the exact amount for your situation. They accept payment by check or money order made out to the State of New Jersey.