When a Recovery Fund Claim is Filed Against Your Contractor License

The State of Florida works to protect homeowners when they feel they’ve been wronged by a contractor through the Recovery Fund.

The State of Florida developed the Recovery Fund as a means to reimburse Florida homeowners financially harmed by hired Florida licensed contractors, enabling them to recoup damages or losses incurred.

That’s good news for homeowners, but if you are the contractor with a claim filed against you, this can be a rough road ahead for your license and if the claim is successful, you’ll owe the State of Florida a reimbursement for their extension of this Recovery Fund.

Here’s what you need to know about how to proceed.

What happens when a claim is filed against licensed contractors?

Once a claim is filed, the contractor in question will be served with an official notice giving them the opportunity to respond.

What’s required for a claimant to bring about a claim?

A claimant is eligible to seek reimbursement from the Recovery Fund if they meet a specific set of criteria.

For example, a homeowner is eligible to bring a claim against a contractor if:

• The claimant has received a final judgment in a court in the State of Florida.
• The claimant received an arbitrational award.
• The Construction Industry Licensing Board (CILB) has issued a final order for the licensee to pay the claimant.

Continually, a claimant can bring a claim if the judgment or restitution order is based upon a violation of certain Florida Statutes (s. 489.129(1)(g), (j), or (k) or (713.35), if the judgment or restitution order specifies the actual damages suffered from the contractor’s violation, or if the contract was executed and the violation occurred on or after July 1^st, 1993 (provided that the claimant has made a diligent attempt to collect the restitution awarded by the CILB).

What happens if the claim is successful?

If the claim is successful, the license of the contractor will be automatically suspended until they are able to reimburse the Recovery Fund for the amount paid to the claimant.