How much can a homeowner recover from a contractor across multiple contracts?

Study for the PSI NASCLA Contractors Licensing Exam. Work with flashcards and multiple choice questions, each question has hints and explanations. Prepare for your exam!

The amount a homeowner can recover from a contractor across multiple contracts is generally capped at $100,000. This recovery limit is designed to provide a framework for accountability and to protect contractors from extensive financial liabilities that might arise from multiple projects. The reasoning behind this figure is to ensure that while homeowners have the ability to seek restitution for damages or breaches in contract, there is also a limit that balances the interests of both homeowners and contractors.

In practice, this means if a homeowner has multiple contracts with a single contractor and experiences damages or performance issues, their total recovery for all those contracts combined cannot exceed $100,000. This limit acknowledges that while issues may arise, there should be a defined boundary to the fiscal impact on contractors, facilitating a fair resolution while preserving homeowners' rights.

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