Stars and Bars RestorationWe get this question a lot, especially from people who just went through their first water or fire damage claim: "Is this company even licensed to do this?" It's a fair question, and the honest answer surprises most people — Colorado does not have a statewide license specifically for water, fire, or mold restoration companies. There's no "restoration license number" to look up the way you'd check a plumber or electrician.
That doesn't mean the industry is a free-for-all, and it definitely doesn't mean licensing doesn't matter at all. It just means the thing homeowners should be checking is different than they assume — and we'd rather explain that clearly than let a bad actor use the licensing gap to look more legitimate than they are.
What Colorado Actually Regulates
Colorado runs what's sometimes called a "municipal patchwork" system for contractor licensing. There is no single state general contractor license. Instead:
- Electrical and plumbing work are regulated at the state level through the Colorado Department of Regulatory Agencies (DORA) — those trades need state-issued licenses.
- General construction, remodeling, and restoration work are not licensed at the state level at all. Cities and counties handle their own local contractor licensing and permitting requirements, and those rules vary a lot from one jurisdiction to the next.
- Asbestos abatement is the one restoration-adjacent area where the state does step in — Colorado law treats asbestos abatement as a matter of statewide concern with its own certification requirements, separate from general restoration work.
So if a company tells you they hold "the Colorado restoration license," that's not really a thing — there isn't one to hold. What you should be asking about instead is business registration, insurance, and industry certification.
What to Check Instead of a License
Since there's no state license number to verify for a restoration company, here's what we tell people to look at:
1. Business Registration
Any legitimate company operating in Colorado should be registered with the Colorado Secretary of State. You can look this up for free at coloradosos.gov — it takes about 30 seconds and confirms the business actually exists as a registered entity, not just a phone number and a truck.
2. IICRC Certification
This is the piece that actually matters most in our industry. The IICRC (Institute of Inspection, Cleaning and Restoration Certification) is the industry-standard certifying body for restoration work — water damage, fire and smoke, mold, and more. It's not a government requirement, but it's the closest thing our industry has to a quality bar, and it's what insurance companies, property managers, and banks look for when they want to know a company actually knows what they're doing.
We've written in detail about specific IICRC credentials before, including WRT and ASD certifications, AMRT certification for mold work, and FSRT certification for fire and smoke restoration. The short version: these aren't just letters after a name — they represent real coursework and testing on how to do the job correctly, safely, and in a way that doesn't cause bigger problems down the line (like drying a wall wrong and growing mold behind it six weeks later).
3. General Liability and Workers' Comp Insurance
Ask for a certificate of insurance before anyone starts work in your home. If a company won't produce one, that's a red flag — not a licensing red flag, but a "what happens if someone gets hurt in my house" red flag.
4. Local Business License, If Your City Requires One
Some Colorado cities and counties do require a local contractor or business license for work performed within their limits. It's worth a quick call to your city or county clerk's office if you want to confirm — but don't expect a statewide answer, because there isn't one.
5. Direct Insurance Experience
A company that regularly works directly with insurance adjusters on claims — documenting damage the way an adjuster expects to see it, understanding scope and pricing software, knowing how a claim actually moves through the process — is going to save you time and headaches compared to one that's never handled a claim before.
Why This Gap Matters After a Disaster
The lack of a state restoration license becomes a real problem after major events — hailstorms, floods, wildfires — when demand spikes and out-of-state "storm chaser" crews show up temporarily to work claims. We've talked before about how to vet a company before hiring them after storm damage, and the license question is exactly why that vetting matters more here than in states with stricter licensing. If there's no state board keeping bad operators out, the screening job falls to you as the homeowner — check registration, check IICRC certification, check insurance, and don't be afraid to ask for references from local jobs, not out-of-state ones.
Where Stars and Bars Fits
We're IICRC certified, veteran-owned, registered with the state, fully insured, and based right here in Colorado City — not a crew that rolled into Southern Colorado behind a storm front and will be gone in three weeks. Our technicians hold specific IICRC credentials for water damage, fire and smoke, and mold work, and we're happy to show documentation for any of it before you hire us. We've also written about what veteran-owned and IICRC certified actually means if you want the fuller picture.
If you're vetting a restoration company right now — for us or anyone else — ask the questions above first. And if you'd rather just call someone you can verify is local and certified, reach us at (719) 676-2456, 24/7. We serve Pueblo, Colorado Springs, Cañon City, Trinidad, and all of Southern Colorado, and we're not going anywhere after the job's done.
A Few Warning Signs of an Unlicensed, Uninsured "Storm Chaser"
Since Colorado's licensing gap makes it easier for fly-by-night operators to blend in, watch for these signs specifically after a storm or wildfire event:
- They ask for full payment up front, in cash, before any work begins
- They can't produce a certificate of insurance when asked
- Their only local presence is a magnetic sign on a pickup truck with an out-of-state plate
- They pressure you to sign an insurance assignment of benefits before they've even inspected the damage
- They can't name a single IICRC certification held by the technicians who'll actually be in your house
None of these are illegal on their own, but together they're the profile of a crew that's here for the claim check, not the community — and won't be around if something needs to be fixed six months later.