Property Damage by Contractors: Legal Steps to Recover Repair Costs

When a contractor damages your home, a structured approach maximizes recovery and minimizes litigation.

Immediate Actions

1. Document thoroughly: Photos/video (wide + close-up), timestamped; written description; contractor's acknowledgment (text/email).
2. Mitigate further damage: Tarp roof, shut water main — keep receipts.
3. Review contract: Scope, warranty, liability limitation, insurance requirements, dispute resolution clause (mediation/arbitration).

Insurance First

• Contractor's general liability (GL) policy covers third-party property damage. Request certificate of insurance (COI) with your name as additional insured.
• Your homeowner's policy may cover (subrogation follows).

Escalation Ladder

1. Direct negotiation: Written demand with repair estimates (3 quotes), deadline (14–30 days).
2. Mediation: Neutral third party; non-binding; preserves relationship; often contractually required.
3. Arbitration: Binding, faster/cheaper than court; check contract clause.
4. Small claims: Limit $5K–$25K (state-dependent); no attorney needed.
5. Civil lawsuit: >small claims limit; attorney recommended; discovery, expert witnesses, trial.

Key Evidence

Contract, change orders, communications, photos, expert repair estimate, code violation reports, payment records.

Statute of limitations: typically 2–4 years (contract/property). Act promptly.