Construction defects.

Existing law specifies the rights and requirements of a claimant or homeowner to bring a civil action for construction defects of a dwelling, including applicable standards for home construction, detailed prelitigation procedures, statute of limitations, burden of proof, and the damages recoverable. Existing law specifies the rights and prohibitions for a builder to defend against a civil action for construction defects, including a prohibition against a builder obtaining a release or waiver in exchange for repair work mandated by law.

This bill would modify specific rights, requirements, and prohibitions for the parties to a civil action for construction defects of a dwelling by revising, among other things, the requirements for a prelitigation notice from the claimant to the builder and the evidence a claimant is required to affirmatively demonstrate to make a claim. The bill would prohibit the recovery of investigative costs, except as specified. The bill would repeal the prohibition on, and instead authorize, a builder to obtain a release or waiver in exchange for certain repair work, as specified.

The bill would prohibit an insurer from asserting repairs as a voluntary payment or as a payment made without the insurer's consent, or denying counting the costs associated with those repairs, against a deductible or self-insured retention.