AB 1903: 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 provides that, to the extent the function or component of a structure is not addressed by the applicable standards, a function or component of a structure shall be actionable, if it causes damage. 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. Existing law defines various terms for these purposes.

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. Among other changes, 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. Commencing July 1, 2027, the bill would prohibit an insurer from asserting repairs as a voluntary payment or as a payment made without the insurers consent, or denying counting the costs associated with those repairs, against a deductible or self-insured retention. The bill would provide that its provisions apply to a structures subject to the provisions governing the rights of a claimant or homeowner to bring a civil action for construction defects of a dwelling, except as provided. The bill would further provide that its provisions are severable. The bill would additionally revise various definitions and define additional terms.