When a Contractor Job Goes Wrong: Help by State

This is general information, not legal advice. A topic we don't list means we couldn't confirm it on an official page, not that the protection doesn't exist.

States where we confirmed a recovery fund

State	What the state says	Source
Alabama	The board's Recovery Fund pays up to $30,000 to a homeowner for a single transaction and up to $90,000 based on the actions of a single licensee. It requires a valid court judgment, not a consent judgment, against a licensed residential home builder, and notice to the board by certified mail within 10 days of filing the lawsuit. Claims based on a residential roofers license are not eligible.	Source
Connecticut	The Home Improvement Guaranty Fund can pay up to $25,000 for actual damages, court costs and attorney's fees, with fees covered only if your judgment includes them. You must have hired a registered contractor for residential work costing more than $200, and you apply within two years of the court judgment. It does not cover new home construction.	Source
Hawaii	The Contractors Recovery Fund pays up to $12,500 per contract and up to $25,000 for a specific licensed contractor. You must have hired a contractor licensed when the contract was signed, give written notice to the Contractors License Board when you start a legal action, and obtain a Hawaii court judgment. The fund is a last resort: you must first try to collect from the contractor's assets, and any bond or insurance, before asking the court for payment.	Source
Maryland	The MHIC Guaranty Fund pays up to $30,000 per claimant, or the amount paid to the contractor if less, and no more than $250,000 to all claimants for one contractor, prorated if exceeded. A claim must be filed within three years of discovering the loss. It is not available if you hired an unlicensed contractor, and it excludes consequential damages, attorney's fees and court costs.	Source
Massachusetts	The Home Improvement Contractor Guaranty Fund compensates eligible homeowners up to $25,000 for unpaid judgments against contractors. The state calls it a fund of last resort, for consumers with an unpaid final judgment, and says you must apply within seven years of the date of the contract. Contractors pay a one-time fee into it at registration.	Source
Minnesota	The Department of Labor and Industry, which runs the Contractor Recovery Fund, says in its fact sheet that eligible applicants may receive up to $100,000, and the fund may pay up to $550,000 total (lifetime) for all approved claims involving the same licensed contractor. You need a court judgment against the contractor, docketed, and must apply within two years of the final judgment date. The Attorney General's handbook (Source) still shows lower limits of $75,000 per claimant per year and $300,000 per contractor per year.	Source
Nevada	The Residential Recovery Fund pays no more than $40,000 on a single claim. Claims against one contractor are capped at $750,000 or 20% of the account balance, whichever is lower. Apply within four years of completing the work, or within two years of a Nevada court judgment. The owner must live in the single-family home and have a contract with a licensed residential contractor, and must have exhausted other means of recovery. It does not cover court costs or legal fees.	Source
North Carolina	The Homeowners Recovery Fund is a last resort. Awards can't exceed 10 percent of the total in the fund when the board approves the application. You must be the owner or former owner of a single-family home, show a loss from the dishonest or incompetent conduct of a licensed general contractor, or of an unlicensed contractor who fraudulently claimed to be licensed, and sue and obtain an unpaid judgment. File within one year after all civil proceedings end. Full recovery isn't guaranteed, and attorney fees can't be recovered.	Source
Virginia	DPOR's fund page says the Contractor Transaction Recovery Fund limits a single claim to $30,000, and claims involving the same contractor to $100,000 per biennium, prorated if exceeded. You need a Virginia court judgment against a licensed contractor, based on improper or dishonest conduct, for a contract involving your residence in Virginia, and must file within 12 months after the judgment is final. If the contractor is bonded, you must seek recovery through the bond. The Board's older consumer guide (Source) still shows a lower limit of $20,000 per claim.	Source
Washington	Successful applicants to the Homeowner Recovery Fund can receive up to $25,000, depending on available funds, with a waitlist if funds run short. You must own and occupy a single-family house or a building of four or fewer units, not a condominium. The contractor must be registered, and you need a final superior court judgment ordered after July 1, 2026. Apply within 90 days after the court case ends.	Source

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General information, not professional advice. Conditions, codes and prices vary. Turn off power, gas or water before any work, and hire a licensed professional when in doubt. Cost figures are our estimates, not quotes.