Contractor Damage FAQ

When a contractor damages your property in California, you have multiple avenues for legal recourse depending on the circumstances. Under California Civil Code Section 3333, you can recover compensation for all damage caused by the contractor's negligent or wrongful conduct. This includes the cost to repair damaged property, replace destroyed items, and restore your property to its pre-damage condition. You may also recover consequential damages such as temporary housing costs if you had to relocate during repairs, loss of use of the property, and diminished property value.

Additionally, California Business and Professions Code Section 7000 et seq. regulates contractors and provides for disciplinary action against licensed contractors who perform substandard work. You can file a complaint with the Contractors State License Board (CSLB), which may result in license suspension or revocation. If the contractor was unlicensed, Business and Professions Code Section 7031 allows you to recover all money paid to the contractor regardless of the quality of work performed.

Filing a complaint with the California Contractors State License Board (CSLB) is an important step when a contractor has damaged your property or performed substandard work. Under Business and Professions Code Section 7011, the CSLB investigates complaints against licensed contractors. To file a complaint, visit the CSLB website or call their Consumer Complaint Hotline. You will need to provide the contractor's name, license number, description of the work performed, details of the damage or defects, and supporting documentation including photographs, contracts, invoices, and correspondence.

The CSLB will investigate and may facilitate arbitration through their voluntary arbitration program. If the contractor violated licensing laws or industry standards, the CSLB can take disciplinary action including license suspension, revocation, or requiring the contractor to pay restitution. The CSLB cannot directly order monetary compensation, but their findings support subsequent legal claims. If your contractor was licensed, you may also be eligible for recovery from the Contractors State License Bond, which provides up to $25,000 in coverage.

Yes, California law provides several legal theories for suing a contractor whose defective work caused property damage. Breach of contract claims apply when the contractor failed to perform according to the terms of your agreement or industry standards. Under California Civil Code Section 1689, you may be entitled to rescission of the contract and return of money paid if the breach is material. Negligence claims under Civil Code Section 3333 apply when the contractor failed to exercise reasonable care and that failure caused damage.

Construction defect claims under Civil Code Sections 895-945.5, known as the Right to Repair Act, provide specific procedures for new residential construction defects. For residential construction, you must provide the contractor with written notice of defects and an opportunity to repair before filing a lawsuit under Civil Code Section 910. Breach of implied warranty claims may also apply, as California law implies warranties of habitability and fitness in construction contracts. You can recover the cost of repairs, diminished property value, and temporary housing expenses.

Hiring an unlicensed contractor in California provides you with significant legal protections if they damage your property or perform substandard work. Under California Business and Professions Code Section 7031, an unlicensed contractor cannot enforce any contract for compensation and must return all money paid by the homeowner regardless of whether the work was satisfactorily completed. This means you may be entitled to a full refund of all payments made, plus damages for any harm caused.

Unlicensed contracting is a misdemeanor under Business and Professions Code Section 7028, punishable by fines and potential jail time. You can report unlicensed contractors to the Contractors State License Board, which actively prosecutes unlicensed activity. For your civil claim, the unlicensed contractor's inability to recover under the contract strengthens your position significantly. You can sue for property damage under negligence theory, recover all payments made, and claim additional damages for the cost of correcting defective work.

The amount you can recover from a contractor who damaged your California home depends on the extent of damage and the available legal theories. Under California Civil Code Section 3333, you are entitled to compensation for all detriment proximately caused by the wrongful conduct. This includes direct repair costs, which should be the reasonable cost to restore your property to its pre-damage condition using qualified contractors and appropriate materials.

You can recover diminished property value if the damage permanently affects your home's market value even after repairs. Consequential damages include temporary housing costs during repairs, storage fees for personal property, lost rental income if applicable, and other reasonably foreseeable expenses. If the contractor's conduct was fraudulent, oppressive, or malicious, punitive damages may be available under Civil Code Section 3294. Document all damages thoroughly with photographs, receipts, and expert estimates.

California has specific statute of limitations periods for construction defect and contractor damage claims that vary based on the type of claim and defect. For patent defects, which are defects that are immediately apparent or reasonably discoverable, the statute of limitations is four years from substantial completion under Code of Civil Procedure Section 337. For latent defects, which are hidden defects not discoverable through reasonable inspection, the limitations period is generally ten years from substantial completion under Code of Civil Procedure Section 337.15.

For personal injury or property damage resulting from construction defects, the statute is two years from the date of injury under Section 335.1. Breach of contract claims must be filed within four years for written contracts under Section 337 and two years for oral contracts under Section 339. The Right to Repair Act adds pre-litigation requirements for residential construction defects that may affect timing. Consult with an attorney promptly when you discover construction damage, as missing deadlines can bar your recovery entirely.

California law provides homeowners with certain rights to withhold payment when contractors damage property or fail to perform as agreed, but you must exercise these rights carefully. Under Civil Code Section 8800, property owners can withhold a reasonable amount from progress payments to cover the cost of correcting defective or incomplete work. The California Right to Repair Act provides specific procedures for residential construction, including the right to withhold payment pending repair of defects.

However, wrongfully withholding payment can expose you to claims by the contractor, including mechanics lien enforcement. Before withholding payment, document all damage thoroughly with photographs and written descriptions. Provide the contractor with written notice specifying the defects and the cost to repair them. Request that the contractor correct the problems within a reasonable time. If withholding payment, ensure the amount withheld reasonably corresponds to the cost of correcting the damage.

Sending a formal demand letter to a contractor for property damage is an important step that may resolve your dispute without litigation and strengthens your position if you must sue. Your demand letter should clearly identify the parties, the project, and the contract if applicable. Describe in detail the damage caused by the contractor's work, including dates, specific locations, and the nature of the defects or harm. Include photographs and repair estimates from independent contractors.

State the specific amount you are demanding, broken down by category such as repair costs, temporary housing, lost rental income, and other consequential damages. Reference applicable California law, including Business and Professions Code Section 7000 for contractor licensing requirements and Civil Code Section 3333 for damage recovery. Set a reasonable deadline for response, typically 15 to 30 days. Send the letter via certified mail with return receipt requested and keep copies of everything.

Multiple insurance policies may provide coverage when a contractor damages your property in California. First, licensed contractors are required to carry general liability insurance, which should cover damage they cause to your property during the course of their work. California Business and Professions Code Section 7071.5 requires contractors to maintain a license bond of at least $25,000, which may provide some recovery for qualifying claims. Request the contractor's insurance information immediately after damage occurs.

Your own homeowners insurance may also provide coverage depending on the cause of the damage and your policy terms. If the contractor's work caused sudden and accidental damage, such as a burst pipe or fire, your policy may cover repairs minus your deductible. However, homeowners insurance typically excludes defective workmanship and construction defects. If the contractor is uninsured or underinsured, you may need to pursue them directly through litigation with recovery through wage garnishment or property liens.

Taking prompt action after discovering contractor damage is essential to protect your legal rights and maximize your recovery. First, document everything immediately with extensive photographs and videos showing all damaged areas from multiple angles. Create written notes describing the damage, when you discovered it, and any conversations with the contractor. Stop any ongoing work if the damage is ongoing and the contractor is still on-site. Notify the contractor in writing of the damage and request that they inspect and repair it at no additional cost.

Obtain repair estimates from at least two independent licensed contractors to establish the cost of correction. Review your contract to understand warranty provisions, dispute resolution requirements, and insurance obligations. Verify the contractor's license status through the Contractors State License Board website and obtain their insurance information. Notify your own homeowners insurance if applicable. For residential construction, California Civil Code Section 910 requires written notice to the contractor before filing a lawsuit, so begin this process promptly.