How do I file a bond claim against a contractor?
Find the surety company name on the contractor's state license lookup, then submit a written claim directly to the surety with contract, payment records, and evidence of contractor failure. California contractors carry $25,000 bonds; Oregon $20,000; most states $10,000-$25,000. The surety pays valid claims up to the bond limit.
A surety bond is a three-party agreement: the contractor (principal) pays a premium to the surety company; the surety promises to pay third parties (you, the homeowner) up to the bond amount if the contractor fails to meet legal obligations; the state requires the bond as a condition of licensure. Bonds are NOT insurance — the contractor remains legally liable, and the surety can sue the contractor to recover any amount paid out.
Bond amounts by state (residential, common values):
- California (CSLB): $25,000 contractor bond - Oregon (CCB): $20,000 residential, $25,000 commercial - Arizona (ROC): varies by license class, typically $5,000-$15,000 - Washington (L&I): $12,000 general, $6,000 specialty - Nevada (NSCB): varies, $1,000-$50,000 - Florida (DBPR): varies by classification - North Carolina (NCLBGC): no bond required for residential; surety bond may apply on individual jobs
How to find the surety: search the contractor's state license. The lookup page lists the surety company name and bond number. California CSLB shows it directly on the license detail page; Oregon CCB shows it; most states publish it.
The claim process:
1. Confirm the bond is in force. Bonds can be canceled by the surety or by the contractor's non-payment of premium. The state license lookup shows current bond status — if the bond shows "canceled," your claim window has closed.
2. Document the claim. Contract, all payment records, photos of incomplete work, all communications with the contractor, the certified-mail demand letter you sent (states require notice before claim filing in some cases).
3. File with the surety. Most sureties have a claim form on their website. Include all documentation and a clear demand amount. Major construction sureties include Travelers, Hartford, Old Republic, RLI, Argonaut, and Liberty Mutual.
4. Wait for surety investigation. The surety has 30-90 days to investigate (varies by state). They will request information from the contractor, may inspect the job site, and may negotiate a settlement.
5. Receive payment or denial. If approved, payment within 60 days. If denied, you can sue the surety in some states; in others, the surety's denial is final.
6. Surety subrogation. After paying you, the surety has the right to recover from the contractor. The contractor remains personally liable for the full amount.
Bond claim limits and prioritization:
- The bond is shared. If multiple homeowners file claims against the same contractor's bond, the surety may pay claims pro-rata if total claims exceed the bond limit. - File quickly. First-filed claims are processed first in many states. - File even if you exceed the bond. Even if your loss is $50,000 and the bond is $25,000, file — partial recovery is better than none, and the bond payout may push the contractor into insolvency, making criminal prosecution more likely.
Where bond claims fail:
- Unlicensed contractor. No bond exists. - Bond was canceled before the work began. - Claim filed after the statute window (typically 1-2 years). - Loss is "consequential damages" (lost rental income, hotel costs) — most bonds cover direct contract loss only. - Contractor's surety has gone insolvent (rare).
Groundcheck (earthmove.io/trust) shows current bond status as part of every license-board check. A "Caution" verdict on Groundcheck due to canceled or expired bond is a hard stop — you have no first-dollar recovery if the contractor fails.
Run a free Groundcheck
Verify any contractor or business. License status, court records, OSHA history. Under 90 seconds. The business is never notified.