The Nevada Residential Improvement Bond, officially the Residential Improvement Bond for the Protection of Consumers, is a $100,000 surety bond a licensed residential contractor files with the Nevada State Contractors Board (NSCB). It is not a blanket license requirement. Nevada law (NRS 624.970, added by Assembly Bill 39 and effective October 1, 2023) caps the down payment a residential contractor can collect on a single-family home improvement contract at $1,000 or 10 percent of the total contract price, whichever is less. A contractor who wants to collect more than that cap must first file this $100,000 bond with the Board, or have been granted relief from the license bond requirement under NRS 624.270(5). The bond is a consumer-protection guarantee, made in favor of the State of Nevada solely for the benefit of a homeowner who contracts for work on their residence. It is not insurance for the contractor.
| Item | Detail |
|---|---|
| Who requires it | Not required to hold a license. A residential contractor files it voluntarily with the Nevada State Contractors Board to lift the statutory down-payment cap on single-family residential improvement contracts |
| Governing law | NRS 624.970 (mandatory contract elements; down-payment cap and bond at NRS 624.970(2)(g); definitions at NRS 624.970(7)), added by Assembly Bill 39 (2023 session), effective October 1, 2023. Relief alternative under NRS 624.270(5) |
| Official form | Residential Improvement Bond for the Protection of Consumers (Nevada State Contractors Board) [VERIFY against NSCB: exact form number and revision date] |
| Bond amount | $100,000, fixed by statute (not scaled to the license) |
| Premium basis | [CLIENT FLAG: insert All n One premium rate/basis] |
| Coverage term | [VERIFY against the NSCB bond form: whether the bond is continuous until cancelled or a fixed term, and the cancellation notice period] |
| Obligee | State of Nevada, solely for the benefit of a consumer who contracted for a residential improvement; filed with and held by the Nevada State Contractors Board |
How much is the bond, and how is the amount set?
The amount is fixed by statute at $100,000. It does not scale with your license, your monetary limit, or the size of the job. Under NRS 624.970(2)(g), the exception to the down-payment cap applies only when the contractor “has filed with the Board a bond solely for the protection of consumers in the amount of $100,000.”
This is the key distinction between this bond and the regular Nevada contractor license bond. The contractor license bond under NRS 624.270 is set by the Board somewhere between $1,000 and $500,000, based on your license classification, the monetary limit granted on the license, and your financial responsibility. The Residential Improvement Bond is a separate, flat $100,000 instrument that sits on top of the license bond when you want to collect larger down payments. Filing it does not change your license bond.
You do not pay the $100,000. That figure is the maximum the surety could pay out on claims. You pay an annual premium, which is a fraction of that amount.
What does the bond cover?
The bond protects the homeowner, not the contractor. It guarantees that you will meet your obligations on a residential improvement contract and that consumers have a source of recovery if you do not.
- The bond is made in favor of the State of Nevada, solely for the benefit of a consumer who entered into a contract with you for work concerning a residential improvement.
- It backs the consumer-protection contract rules that AB39 put in place for single-family residential work, including the requirement (NRS 624.970(2)) that residential improvement contracts contain specified terms and that progress payments not exceed the value of work performed.
- The surety’s total exposure is capped at $100,000, regardless of how many consumers file claims.
- The bond does not shrink the contractor’s own responsibility. If the surety pays a claim, you are legally obligated to repay the surety in full. The bond is a guarantee of your conduct, not insurance that protects you.
“Work concerning a residential improvement” is defined narrowly. Under NRS 624.970(7)(d) it means “any construction, remodeling, repair or improvement performed by a residential contractor to a completed, single-family residence,” plus supervision of that work. It excludes residential photovoltaic (solar) systems (NRS 624.855) and residential pools and spas (NRS 624.915), which have their own rules. Industry guidance from the Board’s rollout of AB39 indicates the requirements target owner-occupied, completed single-family homes and do not apply to new single-family construction, non-owner-occupied homes, multi-family construction, or commercial work. [VERIFY against NSCB AB39 guidance: the owner-occupied and new-construction exclusions, which come from the Board’s industry bulletin rather than the statutory text itself.]
How much does the bond cost?
You do not pay the full $100,000. You pay an annual premium, which is a percentage of the bond amount and is based mainly on your personal credit and business history.
[CLIENT FLAG: insert All n One pricing. Provide the premium rate range by credit tier and one worked example, for example: “A $100,000 Nevada Residential Improvement Bond typically costs X% to Y% of the bond amount per year. With good credit, expect about $___ per year.” Do not publish a premium figure until All n One supplies it.]
Because this bond is a fixed $100,000, the premium does not vary by contract size the way a job-specific bond would. It varies by the applicant’s qualifications.
Is this the same as the contractor license bond or the Residential Recovery Fund?
No. Three separate things get confused here:
- Contractor license bond (NRS 624.270). Every Nevada contractor must file a license bond (or cash deposit) to hold a license. The Board sets it between $1,000 and $500,000 based on your license type, monetary limit, and financial responsibility. This is mandatory. The Residential Improvement Bond is not part of it and does not replace it.
- Residential Improvement Bond for the Protection of Consumers (NRS 624.970). The $100,000 bond on this page. It is optional. You file it only if you want to collect a down payment above the $1,000 or 10 percent cap on single-family residential improvement contracts. A contractor who never exceeds the cap is not required to file it.
- Residential Recovery Fund (NRS 624.470). A state fund, financed by assessments on licensed contractors, that compensates certain homeowners for actual damages caused by a licensed contractor’s work on the homeowner’s residence. It is administered by the Board and is not a bond you buy. [VERIFY against NSCB / NRS 624.470: current per-claimant and aggregate payout limits and eligibility, before describing the Recovery Fund in any more detail.]
There is also a second, non-bond way to lift the down-payment cap: a contractor who “has been granted relief by the Board pursuant to subsection 5 of NRS 624.270” (relief from the license bond requirement) is likewise not held to the cap, under NRS 624.970(2)(g).
How do I get bonded and file with the state?
- Confirm you actually need it. If you never collect a down payment above $1,000 or 10 percent of the contract price on single-family residential improvement work, you are not required to file this bond. File it if you want the flexibility to collect larger down payments.
- Apply for the $100,000 bond. Request a quote for the Residential Improvement Bond for the Protection of Consumers. Approval is typically based on your credit and business background.
- Pay the premium and receive the executed bond. The surety issues the bond on the Board-approved form, signed and sealed.
- File the bond with the Nevada State Contractors Board. Submit the executed bond to the NSCB so it is on file before you enter contracts that exceed the down-payment cap.
- Keep the bond active and your contracts compliant. Renew the bond so it stays on file, and make sure your residential improvement contracts still include every element NRS 624.970 requires. Non-compliance is a cause for disciplinary action against your license under NRS 624.3016.
Frequently asked questions
Is the Nevada Residential Improvement Bond required for my contractor license?
No. It is separate from the mandatory contractor license bond. You file the $100,000 Residential Improvement Bond only if you want to collect a down payment above the statutory cap of $1,000 or 10 percent of the contract price on single-family residential improvement work. Your license bond under NRS 624.270 is the one you must always carry.
Why would I file it if it is optional?
Because NRS 624.970 limits the down payment on a single-family residential improvement contract to $1,000 or 10 percent of the total price, whichever is less. Filing the $100,000 bond with the Board removes that limit, so you can structure larger down payments. Contractors who front significant material or mobilization costs often want that flexibility.
How much is the bond?
The bond amount is fixed at $100,000 by statute. You do not pay that amount. You pay an annual premium, which is a small percentage of it based mainly on your credit and business history. [CLIENT FLAG: All n One to supply the premium range and a worked example.]
What work does this apply to?
Work concerning a residential improvement, defined in NRS 624.970(7)(d) as construction, remodeling, repair, or improvement to a completed single-family residence, plus supervision of that work. It excludes residential solar photovoltaic systems and residential pools and spas, which have their own requirements. Board guidance on AB39 indicates it targets owner-occupied single-family homes and does not cover new construction, multi-family, or commercial projects. [VERIFY against NSCB AB39 guidance.]
Who does the bond protect?
The homeowner. The bond is made in favor of the State of Nevada, solely for the benefit of a consumer who contracted for the residential improvement. It is not insurance for you. If the surety pays a claim, you must repay the surety in full.
What happens if I collect a large down payment without filing the bond?
The down-payment provision is enforceable against you. Under NRS 624.970, a contract that omits the required down-payment terms can be modified by the owner to bring it into compliance, and failure to comply with the residential improvement contract rules is a cause for disciplinary action against your license under NRS 624.3016.
Is this the same as the Residential Recovery Fund?
No. The Residential Recovery Fund (NRS 624.470) is a state-administered fund financed by contractor assessments that reimburses certain homeowners for damages. It is not a bond you purchase. The Residential Improvement Bond is a surety bond you file with the Board to lift the down-payment cap. [VERIFY against NSCB / NRS 624.470 for current Recovery Fund limits.]
How long does the bond last?
The bond stays on file with the Board while you rely on it to exceed the down-payment cap. Keep it renewed so it does not lapse. [VERIFY against the NSCB bond form: whether it is written continuous until cancelled or for a fixed term, and the cancellation notice period.]
