Renovation Guides
How to check a contractor's license
Look up a Florida contractor on MyFloridaLicense.com, check local registration in counties like Brevard, verify workers' comp and report unlicensed work.
Renovation Guides
Florida's Homeowners' Construction Recovery Fund: When It Can Help
How the Florida Homeowners' Construction Recovery Fund works, which contractors it covers, current payment limits and how to make a claim.
Last updated: Checked against official sources: 2 min readBy the Florida Renovation Guide editorial teamTopic: Permits & Contractor Guides
The short answer
- The fund can compensate homeowners who suffer financial loss because of certain misconduct by a licensed Florida contractor.
- It only covers licensed contractors. Contracts with unlicensed contractors aren't eligible.
- For contracts signed on or after July 1, 2024, payments are capped at $100,000 per claim for general, building and residential contractors and $30,000 for other covered trades.
- Residential contracts over $2,500 must include a notice about the fund.
On this page
Florida has a state fund specifically for homeowners hurt by licensed contractors. It isn't fast and it isn't a guarantee, but knowing it exists, and what it requires, is another reason to hire only licensed contractors.
What the fund is
The Florida Homeowners' Construction Recovery Fund is run by the Construction Industry Licensing Board within the Department of Business and Professional Regulation (DBPR). It can pay homeowners for certain financial losses caused by licensed contractors, such as when a licensed contractor takes money and abandons the job, or violates specific parts of Florida's contractor law.
Who it covers
- Division I: general, building and residential contractors.
- Division II: roofing, sheet metal, air conditioning, mechanical, pool and spa, plumbing, underground utility, solar and specialty contractors.
The contractor must have been licensed, the property must be residential, and the claimant must be the homeowner. Contracts with unlicensed contractors are not eligible.
How much it can pay
For contracts entered into on or after July 1, 2024, the statute caps payments at:
| Contractor type | Maximum per claim |
|---|---|
| Division I (general, building, residential) | $100,000 |
| Division II (roofing, plumbing, air conditioning and others) | $30,000 |
There are also lifetime caps on the total paid out because of any one contractor. Older contracts have lower limits. Check the current statute for details.
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The notice in your contract
Residential repair and construction contracts where labor and materials total more than $2,500 must include a written notice about the fund, in the wording set by the statute, followed by the board's contact information. Contractors who leave it out can be fined. If your contract doesn't have it, ask for it.
How a claim works
The process is formal and takes time:
- You generally must first pursue the contractor and obtain a final judgment, arbitration award or court-ordered restitution.
- You show you've made reasonable attempts to collect from the contractor.
- You file a claim with the fund within the deadlines set by law, with supporting documents.
- The board reviews the claim and decides what, if anything, to pay.
Because the rules and deadlines are technical, many homeowners work with an attorney. Law firms that handle these claims publish step-by-step explanations of the process.
Avoiding the need for it
The fund is a backstop. The best protection is still prevention: check the license, keep deposits reasonable, use Florida's lien law protections, and sign a complete contract using our contract checklist.
Frequently asked questions
Which contractors are covered?
The fund covers Division I contractors, which are general, building and residential contractors, and Division II contractors, which include roofing, plumbing, air conditioning, mechanical, pool and spa, sheet metal, underground utility, solar and specialty contractors.
Do I have to sue the contractor first?
Generally, you must first try to recover your loss from the contractor, usually through a judgment, an arbitration award or a restitution order, before the fund will pay. The fund is a last resort, not a quick refund.
Does the fund cover unlicensed contractors?
No. That's one of the strongest reasons to check a license before you sign.
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Official sources
- Section 489.1425, notice to residential property owners (The Florida Senate)
- Section 489.143, payment from the fund (The Florida Senate)
- What is Florida's Construction Recovery Fund and how can it help homeowners? (Jimerson Birr)
- Step by step, how the Construction Recovery Fund process works (Jimerson Birr)
We summarize official information in our own words and link to the source. Requirements can change, so confirm details with the source before relying on them. Our editorial standards
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