Bill increases amount homeowners can file for from recovery fund

Tuesday, March 29, 2005 | 11:06 a.m.

Assembly Bill 34, which increases the amount of money that can be paid out to homeowners who have been harmed by errant contractors and doubled the claim limit per customer, was signed into law Monday by Gov. Kenny Guinn.

The change in the law also gives homeowners the ability to claim additional compensation when they have been damaged by a contractor's failure to appropriately execute a contract.

The new law raises the limit to $400,000 from $200,000 that can be paid out per contractor under the state's Residential Recovery Fund, while the individual claim limit that can be received was raised to $35,000 from $30,000 per homeowner. The bill applies retroactively to Jan. 1.

The bill received unanimous support in the Assembly and Senate. It was endorsed by the Nevada State Contractors Board and sponsored by Assembly Majority Leader Barbara Buckley, D-Las Vegas.

Since being established in 1999, the Residential Recovery Fund has paid out more than $1 million in claims to injured homeowners. A homeowner who is damaged by a residential contractor may file a claim against the fund.