Scammed Homeowners Can Recover $25,000

Washington homeowners who reported contractor fraud to police and Labor and Industries may qualify for state reimbursement.

Updated on Nov. 6, 2026 in Home Renovation

Screen-print poster illustration of a wooden house block with one side peeled open, resting on a cream field beside coins, evoking recovery of lost home-repair money. — Washington homeowners who were scammed by contractors may now recover up to $25,000 from a state fund that has already paid two claims. AI Illustration. Upload story photo >

Live Poll

Do you trust state government to protect homeowners from contractor scams?

Washington Labor and Industries launched a Homeowner Recovery Fund on July 1 to reimburse homeowners who were scammed by contractors. Two homeowners have already received the program's maximum payment of $25,000, and the fund has had five applicants so far.

Why it matters

For Washington homeowners who hand over large deposits for renovations, the fund offers a path to recover money when a contractor disappears with it. The legislature created the program in 2023 to relieve homeowners who lost payments to contractors who never finished the work.

Two homeowners received the maximum $25,000 reimbursement from the fund. Dan Morrill of Tacoma lost a $32,000 downpayment, and a Spokane consumer paid $70,000 for hot tub and porch renovations that were never completed.

The players

Washington Labor and Industries

The state agency that administers contractor licensing and consumer protections, and now runs the Homeowner Recovery Fund.

Dan Morrill

A Tacoma homeowner who lost a $32,000 downpayment to a contractor who disappeared.

The details

Homeowners who reported the fraud to both law enforcement and Labor and Industries met the criteria for reimbursement. Morrill paid a $32,000 downpayment to a contractor who then disappeared, and he had received a $75,000 bid for siding work before that. The Spokane homeowner paid $70,000 to a contractor who also left the job without completing the hot tub and porch renovations. Business cycles and taxes fund the program from 2023 onward.

2023: The legislature formed the Homeowner Restitution Program.
July 1: The Homeowner Recovery Fund formally launched.

The Home Front

The fund follows the 2023 Homeowner Restitution Program the Washington legislature created to address contractor fraud. It gives scammed homeowners a state-backed route to recover deposits rather than pursuing contractors in court alone.

If you have paid a large deposit to a contractor who has stopped responding, document the payments and report the situation to law enforcement and Labor and Industries. Before signing any renovation contract, confirm the contractor's state license and keep written records of every payment.

The takeaway

A paper trail of every deposit and a report filed with both police and Labor and Industries are the two steps that made reimbursement possible for these homeowners. Keep a licensed contractor's details and payment receipts on file before major renovation work begins.