Florida’s New Contractor Law Is Now in Effect: What Homeowners Need to Know About HB 1335

Florida homeowners finally have stronger protection against bad contractors.

With House Bill 1335 (HB 1335) now in effect, the rules are clearer, the penalties are sharper, and the safety net for homeowners is stronger. The new law tightens accountability within the Florida Department of Business and Professional Regulation (DBPR) and expands recovery options when licensed contractors fail to deliver — a major win for Florida property owners.

What the Law Changed

Here’s what HB 1335 means for Florida homeowners — in clear, actionable terms:

Higher payouts from the Florida Homeowners’ Construction Recovery Fund

For contracts entered on or after July 1, 2024 — and claims filed on or after January 1, 2025 — homeowners harmed by licensed contractors may now seek up to $100,000 per claim (Division I) and $30,000 per claim (Division II) from the state’s Homeowners’ Construction Recovery Fund.
In addition, each licensee now faces a lifetime aggregate cap of $2 million for Division I and $600,000 for Division II.

The Fund remains a last-resort remedy — homeowners must first obtain a final judgment, restitution order, or arbitration award and show good-faith efforts to collect.

Clarified enforcement and penalty process

While HB 1335 did not raise contractor bond requirements, it updates enforcement statutes under DBPR, allows local licensing agencies to recommend restitution, and clarifies how penalties can be imposed under Chapter 489, Florida Statutes.
These updates give regulators and local boards clearer authority to discipline bad actors and protect consumers before more damage occurs.
See also The Cost of Hiring Unlicensed Contractors in Florida.

Modernized compliance and licensing systems

The law also modernizes DBPR procedures — from online renewals and reporting to account management — creating greater transparency across Florida’s construction-licensing framework. This supports more consistent oversight of both Division I and Division II contractors statewide.

Why It Matters for Homeowners

These updates strengthen your legal protections, but prevention is still your best defense. Even with tougher laws, recovering after a failed renovation can be slow and stressful.

Before you sign or pay:

• Verify your contractor’s license — check DBPR records, complaint history, and disciplinary actions.

• Confirm insurance and bonding coverage directly with the carrier — not just a photocopy.

• Review your renovation contract for lien protections, fair payment schedules, and clear change-order terms.

• Recognize early red flags — vague scopes, pressure for large deposits, or unpermitted work.

• Avoid hidden contract pitfalls that can cost you thousands. See Top 10 Reasons You Need a Construction Lawyer in Florida.