Alabama homeowners seeking financial relief from construction disputes may now receive up to $30,000 in compensation, thanks to a recent change by the Home Builders Licensure Board.

The adjustment raises the maximum potential payout from the Homeowners Recovery Fund from the previous $20,000 limit.

The fund, established in 1992, provides financial assistance to homeowners who win legal judgments against licensed homebuilders.

The Board, which oversees the residential construction industry in Alabama, approved the increase following a review process that included the Joint Legislative Sunset Committee, led by State Rep. Margie Wilcox (R-Mobile) and Sen. Will Barfoot (R-Pike Road).

“The Home Builders Licensure Board exists to protect consumers and ensure that only qualified professionals work in this industry,” said Executive Director Chip Carden. “This increase is a clear benefit to homeowners, and we appreciate the leadership of Representative Wilcox, Senator Barfoot, and the Sunset Committee for helping make it happen.”

Annual contributions from licensed builders fund the Homeowners Recovery Fund. Homeowners who successfully sue a builder for damages can apply for compensation from the fund. The new payment cap will take effect on March 17.

For more information, visit the Home Builders Licensure Board’s website or call 800-304-0853.