Florida Homeowners’ Construction Recovery Fund: Eligibility and Claims

Overview of the Recovery Fund

The Florida Homeowners' Construction Recovery Fund serves as a last-resort source of limited reimbursement for eligible homeowners who suffer financial losses due to a licensed contractor's financial mismanagement or misconduct. It is administered by the Construction Industry Licensing Board within the Department of Business and Professional Regulation (DBPR). The fund compensates only after all other civil remedies have been exhausted.

Florida Homeowners' Construction Recovery Fund page

Homeowners should understand that the fund does not cover every type of dispute or loss. It focuses specifically on qualifying violations tied to financial harm from licensed contractors on residential projects in Florida. Payments come from a dedicated fund maintained through licensing fees and other sources, and awards are subject to statutory caps that vary by contract date and contractor division.

Who Qualifies for Recovery

Eligibility is governed by s. 489.141, F.S.. A claimant must be a natural person who contracted for the construction or improvement of a residence in Florida. The claimant must obtain a final judgment, arbitration award, or CILB restitution order based on violations under s. 489.129(1)(g), (j), or (k), F.S., or s. 713.35, F.S.

Key conditions include:

• The contractor held a valid license at the time of the contract and violation.
• The contract and violation occurred on or after July 1, 1993 for Division I contractors and July 1, 2016 for Division II contractors.
• All available bonds, insurance, or other remedies have been exhausted.
• A writ of execution shows insufficient assets, or diligent searches confirm no recoverable assets.
• The claim is filed within one year of the final order or award.

Certain individuals are disqualified, including spouses of the licensee, other licensees acting as the contractor in the transaction, or those with contracts before the applicable dates for Division II work.

Claim form and instructions

Verifying Contractor License and Classification

Before pursuing a claim, confirm the contractor holds or held a valid license and identify the correct division. Use the official DBPR license search tool to review license status, classification, and qualifying business entity at the time of the contract. Division classification affects both eligibility dates and payment limits. Search by name or license number on the DBPR site and note the exact license type, such as certified general contractor (Division I) or certified roofing contractor (Division II).

Qualifying Violations in Detail

To qualify, the final order must be based on specific violations listed in statute. Section 489.129(1)(g) covers committing mismanagement or misconduct in the practice of contracting that causes financial harm to a customer. Section 489.129(1)(j) addresses abandoning a construction project. Section 489.129(1)(k) involves making a false statement with respect to a project. The order must specify actual damages resulting from one or more of these grounds. Homeowners can review the full text of s. 489.129, F.S. and the claim form instructions for examples of conduct that meets these criteria. The final order language must clearly link the damages to one of the listed statutory grounds.

Division I versus Division II Contractors

Division I contractors typically handle larger or more complex residential work such as general, building, or residential contracting. Division II contractors often focus on specialized trades like roofing, plumbing, electrical, or pool installation. The fund treats these categories differently for both eligibility start dates and payment caps. Confirm the contractor's classification through the official DBPR license lookup before proceeding.

Maximum Payments and Limits

Payment amounts depend on the contract date and contractor division. Beginning January 1, 2025, for contracts entered into on or after July 1, 2024, the maximum is $100,000 per Division I claim and $30,000 per Division II claim, with aggregate lifetime caps per licensee. Earlier contracts follow prior statutory caps detailed in the statutes and FAQs.

Recovery Fund FAQs

Aggregate Caps per Licensee

In addition to per-claim limits, the fund imposes lifetime aggregate caps on total payouts against any single licensee. For contracts on or after July 1, 2024, the aggregate is $2 million for each Division I licensee and $600,000 for each Division II licensee. Payments for claims from the same transaction are further limited to the applicable per-claim maximum regardless of the number of claimants. The board pays approved claims in the order filed, subject to available appropriations.

What the Fund Does Not Cover

The fund pays only actual damages directly tied to the qualifying violation. It does not cover post-judgment interest, attorney fees, court costs, medical damages, punitive damages, or amounts not expressly based on the statutory grounds. Homeowners should review the final order language carefully to ensure damages are properly characterized.

Required Steps Before Filing a Claim

1. Obtain a final judgment, arbitration award, or CILB restitution order specifying actual damages from the qualifying violation.
2. Exhaust all collection efforts, including writs of execution and asset searches.
3. Perform an asset search demonstrating no recoverable assets of the contractor or company. Detailed guidance is available in the official asset search instructions.

Instructions for Performing an Asset Search

Practical Checklist for Asset Searches

Homeowners must demonstrate that the contractor or qualifying business has insufficient assets to satisfy the judgment. Use this general checklist derived from official guidance:

• Verify the exact legal name of the contractor and any business entity through Sunbiz or DBPR records.
• Identify counties of residence and principal place of business.
• Search county tax assessor records for real property ownership or tax payments.
• Check for motor vehicles, boats, or other titled assets through appropriate state or county offices.
• Review for any bonds, insurance proceeds, or other recoverable funds already pursued.
• For claims of $15,000 or less, complete the short-form affidavit; for larger amounts, use the long-form affidavit with supporting documentation.

If assets exist that could partially satisfy the judgment, collection efforts must continue before the fund will consider the claim.

Additional details from official asset search instructions include confirming the legal name via the Department of State for business entities and noting the exact address used on the contract. Search both the contractor's personal residence county and the business principal place of business county. Look for any liens, mortgages, or prior judgments that may affect available equity in property.

How to File a Claim

Download and complete the official four-page claim form. Required documentation typically includes:

• The signed original claim form.
• Copy of the construction contract and change orders.
• Copy of the final judgment, award, or restitution order.
• Proof of asset searches and exhaustion of remedies.
• Affidavit of asset search (short form for claims $15,000 or less).

Submit the complete package to the Recovery Fund office at the address listed on the DBPR site. Incomplete claims are returned. The board reviews eligibility and determines awards.

Recovery Fund Claim Form

Documentation Tips

Organize materials clearly and include all change orders that relate to the original transaction. Highlight the specific language in the judgment or order that ties damages to a qualifying violation. Keep copies of everything submitted.

Preparing a Complete Claim Package Checklist

• Include the signed contract showing the homeowner as a natural person contracting for residential work.
• Attach all relevant change orders and payment records.
• Ensure the final order explicitly states actual damages from a qualifying violation.
• Provide the writ of execution return or detailed asset search affidavit.
• Verify the one-year filing deadline from the date of the final order.

Common Reasons Claims Are Denied

Claims may be denied if the claimant does not meet homeowner status under s. 489.1402(1)(f), F.S., the contractor was unlicensed, the violation predates the statutory cutoff, or the claimant falls into an excluded category such as a business associate of the licensee. Confirm all requirements with the official claim form instructions before submission.

Additional denial risks include failure to exhaust other remedies, incomplete asset searches, missing the one-year filing deadline, or orders that do not specify actual damages from a listed violation.

Additional Considerations for Homeowners

Contract Notice Requirement

Most residential construction contracts must include a specific notice about the recovery fund. The notice explains that limited payment may be available for losses resulting from qualifying violations by licensed contractors. Review any contract for this statement before signing, as its presence helps confirm the contractor's obligations under the law.

Timeline and Board Review

After submission, the CILB reviews the package for completeness and eligibility. Approved claims result in payment up to the applicable limits, after which the claimant assigns rights to the board for subrogation. The licensee's license is automatically suspended upon payment from the fund until full repayment with interest. Homeowners should track their claim status through official DBPR channels.

Reviewing Full Statutes

Homeowners should review the full statutes in Chapter 489, Part I, F.S., and consult the DBPR Construction Industry Licensing Board pages for the most current forms and guidance. The fund notice must appear in most residential contracts.

Chapter 489, F.S.

This information is general and drawn from official statutes and DBPR resources. Homeowners facing a specific situation should verify current requirements directly with the cited sources, as rules and forms can be updated.