A home renovation or repair project can quickly go from exciting to stressful when something goes wrong. Whether a contractor damages your plumbing during a remodel or leaves structural issues after a roof replacement, you may be wondering what legal options you have for compensation.
Legal protections for property owners
Texas addresses disputes between homeowners and contractors through several areas of law. The Texas Residential Construction Liability Act, often called the RCLA, focuses on residential construction defect claims and sets out a structured process to resolve issues before a lawsuit begins.
The law also recognizes negligence claims. When a contractor does not use reasonable care and that failure leads to harm, a claim may arise based on the contractor’s actions rather than the contract itself.
Steps to take after contractor damage
If you find damage to your home caused by a contractor, the following may help protect your interests:
- Document the damage thoroughly with photographs, videos and written notes that describe the location and extent of the issue
- Preserve all contracts, receipts, invoices, text messages and emails related to the project
- Avoid making repairs on your own before the contractor has had an opportunity to inspect the damage
If the harm is significant, you may also want to obtain an independent inspection from a licensed professional. A third-party assessment can provide an objective record of the problem and the estimated cost of repair.
Insurance and bonds to cover your losses
One of the first questions property owners ask is whether the contractor’s insurance will cover the damage. Licensed contractors in Texas typically carry general liability insurance, which may cover certain types of property damage caused during their work. However, coverage depends on the specific terms and exclusions in the contractor’s policy.
Some contractors also carry surety bonds, which serve as a form of financial protection for the homeowner. A bond does not function the same way as insurance, but it can provide a path to recovering losses if the contractor fails to meet contractual obligations.
Deadlines to pursue a legal claim
Before you can file a lawsuit against a contractor in Texas, the RCLA requires you to send a written demand letter at least 60 days before initiating legal action. This letter must describe the defects in reasonable detail and be sent by certified mail, return receipt requested.
The contractor then has the opportunity to inspect the property and respond with a settlement offer. If they offer to repair the damage, you have 25 days to accept or reject that offer. Should you find the offer unreasonable, you must notify the contractor in writing with your reasons.
Once you can pursue civil action, you generally have two years for negligence and property damage claims, starting from when you discovered—or should have discovered—the defect . An attorney can assist you with this by evaluating the specific circumstances of your case, drafting the required statutory notices and guiding you throughout the entire process.